By Miguel Mike Medina
Photo: Business Wire
Comcast plans a spin-off to include cable TV networks.
The spin-off includes CNBC, MSNBC, E!, SYFY, Golf Channel, and USA Oxygen. Comcast will keep the Bravo and Peacock streaming services and NBC. The spin-off will take roughly one year.
Tom Rogers, Gorbit Gaming executive chairman, and former NBC Cable president joined ‘Squawk Box’ and believes the Comcast cable spinoff is a good idea.
“I think it’s a good idea,” Rogers said. “I think a couple of these channels are my babies, and my first thought was, the kids are going to be all right. This is a very good move in creating an entity where CNBC and MSNBC can get the resources they need to expand their franchises, putting them in a position to exploit the opportunity of the streaming world.”
Cable networks are still making money, but it’s not as high revenue as it once was, and with streaming services expanding in subscriptions and becoming more profitable, Comcast needed to make a bold move. People are growing tired of expensive TV cable bills.
This decision could benefit or cost Comcast in the long run. Rogers thinks Comcast can pull this off if it runs a “healthy spin-off.”
“I think they can do it in a way that creates a healthy spinoff,” Rogers said. “Other companies are burdened by debt. While I think this creates a vehicle that would allow others to take assets and put it in there potentially, I think Comcast is very resistant to burdening this with a lot of debt.”
According to a Comcast news release, the NBCUniversal cable networks generate about $7 billion in revenue, while the rest of Comcast takes in about $116 billion in revenue.
Miguel Mike Medina is the publisher of The MMM Journal. He can be reached at medinamiguelmike@gmail.com
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