Comcast Looking At Forming A New Stand-Alone Company For Its Cable Networks, President Mike Cavanagh Says
deadline.comComcast President Mike Cavanagh delivered an eye-opening update to investors on this morning’s third-quarter earnings call, saying the company is exploring a spinoff of its cable TV networks. “Like many of our peers in media, we’re experiencing the effects of the transition of our video businesses and have been studying the best path forward for these assets,” Cavanagh said. “To that end, we are now exploring whether creating a new, well-capitalized company owned by our shareholders and comprised of our strong portfolio of cable networks would position them to take advantage of opportunities in the media landscape and create value for our shareholders.
We are not ready to talk about any specifics yet, but we’ll be back to you as and when we reach firm conclusions.” The news comes in the wake of Warner Bros.
Discovery and Paramount Global taking a collective $15 billion in write downs on the value of their cable assets and ongoing declines in linear viewing and advertising.
Cord-cutting is shrinking the pay-TV bundle by millions of subscribers each year and it is difficult to know where the floor will ultimately be, though live sports has provided some motivation for some customers to stay tethered.
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