It looks like Comcast is ready to cut the cord on its own cable networks—or at least spin them off into a separate company. As consumers continue ditching traditional TV for streaming, Comcast is scrambling to stay relevant in a media landscape where “prime time” now means whenever Netflix loads. President Mike Cavanagh’s announcement on the company’s Q3 earnings call is the clearest sign yet that even industry giants know the old TV model is fading fast.
Comcast’s plan would isolate cable networks like Bravo, CNBC, MSNBC, Syfy, and USA Network into a new, “well-capitalized” company owned by its shareholders. Notably, this spin-off wouldn’t include NBC or Peacock, signaling that Comcast sees streaming and broadcasting as the future while cable channels are increasingly dead weight. It’s a savvy move—dump the baggage without actually saying, “Our cable properties are tanking.”
Comcast is putting MSNBC up for sale.
CNN just announced massive layoffs coming.Maybe the new owners will figure out that lying non-stop to your audience is a lousy business model. pic.twitter.com/XRSE15aGWQ
— Wall Street Mav (@WallStreetMav) November 12, 2024
Industry analysts like Ross Benes from eMarketer see this as Comcast getting its ducks in a row for potential sales. And why not? Comcast’s real bread and butter is its internet service provider (ISP) business, which, let’s be honest, feels like a monopoly in many areas. By separating its cable networks from the rest of its empire, Comcast can polish up its broadband and streaming businesses while quietly moving the flailing cable channels out of the spotlight—or into someone else’s portfolio.
Imagine you’re MSNBC, facing layoffs after a significant drop in viewership and being sold off your Comcast platform, having to report that social media influencers and X do a better job than you reporting the news.
Also, did they liken us to “basket makers” ? pic.twitter.com/huh8yzBne1
— Shipwreck (@shipwreckshow) November 20, 2024
This pivot mirrors what Warner Bros. Discovery and Paramount Global have already done—take a hard look at their declining cable businesses and, in some cases, write down their value. With cord-cutting accelerating, these networks are hemorrhaging viewers, and advertisers aren’t exactly rushing to invest in a shrinking audience. Creating a standalone company could allow Comcast to say, “Hey, we’re still growing in broadband!” while distancing itself from the awkward reality that cable TV is losing relevance.
MSNBC ratings have cratered by 50%. They are hemorrhaging viewers. Comcast may sell it off.
Can’t imagine why this is happening.
Also, here is Joy Reid berating minority men as racists for not voting as she demands.pic.twitter.com/r5nHDyjhYV
— Western Lensman (@WesternLensman) November 12, 2024
Interestingly, Comcast isn’t ruling out new streaming partnerships despite having skipped over a potential deal with Paramount earlier this year. This might be a nod to the fact that even streaming isn’t the cash cow it once was—competition is fierce, and consumers are now wary of paying for five different platforms. Still, Comcast seems to be hedging its bets by keeping Peacock in the fold.
NEW: Morning Joe hosts awkwardly joke that they “could be fired tomorrow” as the parent company Comcast spins off MSNBC. pic.twitter.com/oc8XkoXyKA
— Trending Politics (@tpbreaking) November 20, 2024
Bottom line? Comcast sees the writing on the wall. Cable TV’s golden age is over, and the company is angling to shed its outdated image. Spinning off its cable networks might not save those channels, but it’ll make Comcast’s balance sheet look sharper—and that’s all Wall Street really cares about.
