Comcast Mulls Spinning Off Cable TV Enterprise

Comcast (CMCSA) on Thursday mentioned in its third-quarter earnings name that it’s contemplating spinning off its cable community portfolio right into a separate firm.

The separation wouldn’t embrace the published community NBC or streaming platform Peacock, Comcast president Mike Cavanagh mentioned within the name.

“Like lots of our friends in media, we’re experiencing the consequences of the transition in our video companies and have been finding out the very best path ahead for these belongings,” Cavanagh mentioned, in response to a transcript offered by AlphaSense.

“To that finish, we are actually exploring whether or not creating a brand new, well-capitalized firm owned by our shareholders and comprised of our sturdy portfolio of cable networks would place them to reap the benefits of alternatives within the altering media panorama and create worth for our shareholders,” Cavanagh added.

Cavanagh additionally mentioned Comcast is contemplating partnerships in streaming.

Comcast Misplaced 365,000 Cable Prospects in Q3 From Yr Earlier

The corporate, which is fighting the rise of cord-cutting, additionally reported combined third-quarter outcomes and a lack of 365,000 cable TV clients year-over-year.

Boosted by its protection of the Paris Summer season Olympics, Comcast’s quarterly income rose 6.5% to $32.07 billion, exceeding Seen Alpha consensus expectations, however earnings per share (EPS) of $0.94 lagged estimates.

Comcast shares are up round 2% Thursday morning however are down by roughly the identical quantity this 12 months.