Here is the link of CNBC reporting on Comcast spinning off their network.
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Comcast Exploring Spinoff of NBCU Cable Networks Into New Company
- Thread starter Joey1986
- Start date
Here is the link of CNBC reporting on Comcast spinning off their network.
So what's the point of Comcast holding on to Bravo?
The "Real Housewives" franchise alone would be reason. Reliable ratings on Bravo, tons of content for Peacock.
They weren’t.
My biggest concern is the NBC Sports contracts; How will they navigate content on channels they don't own anymore?
Comcast to spin off cable networks that were once the entertainment giant's star performers
Those one-time stars for Comcast’s NBCUniversal cable television networks include USA, Oxygen, E!, SYFY and Golf Channel, as well as CNBC and MSNBC.
apnews.com
This spinoff between Comcast and "SpinCo" holding MSNBC and CNBC could take a year for the transition to be completed.
MSNBC staffers ‘in a panic’ as NBC parent Comcast plans to spin off channel — and possibly change its name
“People don’t really know what’s going on,” an insider close to the network said. “They had the election, holidays are coming up. People are tired and just trying to g…
nypost.com
Interestingly prior to this we had mentioned NBC Sports selling off its regional affiliates like NBC Sports Washington became Monument Sports and NBC Sports Chicago became Chicago Sports Network and they cite the same reasons as this like Comcast has to protect Peacock, NBC News and NBC Sports.
NBC Sports Washington is Becoming Monumental Sports Network | Washington Capitals
Network will be available on the same broadcast channels across all cable and satellite providers
www.nhl.com
NBC Sports president on spinoff: 'We're going to fulfill every obligation'
NBC Sports president Rick Cordella tells Sports Business Journal that a spinoff entity will fulfill every obligation to its league partners.
awfulannouncing.com
Comcast to reportedly spinoff cable assets in seismic move
Comcast will reportedly spin off its NBCUniversal cable assets including MSNBC, CNBC, USA, Golf Channel, Oxygen, and Syfy.
awfulannouncing.com
So Far its USA, Golf are the confirmed ones going to the spinoff company.
It will be interesting to see how many of the remaining NBC Sports RSN's will stay with Comcast and who goes to SpinCo. I have not seen NBC Sports California, NBC Sports Bay Area, NBC Sports Philadelphia or NBC Sports Boston mentioned on where they are going in all of this.
Does Microsoft still have part ownership of MSNBC?
Wait, wait... is Prime Video (ranked #1 here) actually Amazon Prime? If so, why don't any of the other streaming services show up on this list.Cable TV is losing viewers. People are cutting the cord. These cable channels aren't growing. They're spinning them off because they can't sell them.
Here is a list of the top tv channels. MSNBC is #14.
U.S. Television Network Ratings Ranking
ustvdb.com
No MSNBC is fully a SpinCo Brand. However SpinCo has the same issues as Audacy, Cumulus and Red Apple Media they it is on how long they are allowed to use the trademarks of Disney, Paramount and Comcast. Like Spinco using MSNBC and CNBC, Audacy using KCBS, KCBS-FM and WCBS-FM, Cumulus using KABC, KGO, WLS and Red Apple using WABC.
So would Spinco in this case be fully separated from NBC? [To get back to how WBD is fully separated from AT&T.]
Yes but the transition to be completely separate will take 1 year to complete according to the articles.
wonder if the real reason for the spinoff is to sell it for cheap to a company like TEGNA or Nexstar or Sinclair to as a way to boost up their profits never mind the fact the cable TV industry is a dying one. i could see TEGNA making a run at buying out these NBCUniversal cable channels for cheap. also could see this as a temporary thing to get some channels into Warner Brothers Discovery and others to Disney or New Fox.
A spin-off isn't a sale. It's basically a tax-free transfer to the stockholders. It gets the assets off Comcast's books, and that usually helps their stock.
WBD is still under water with $40 billion in debt from the WB deal. I doubt they have any interest in adding even more debt and even more cable channels that no one watches.
This is an important point. AT&T larded up WBD with a battleship worth of debt that it would now be responsible for paying down. In the process, that debt came off AT&T's books. If Comcast does something similar with SpinCo, that entity will be hobbled with excess debt from day one, but Comcast's financial position will instantly look better to Wall Street. So the one-two punch is unloading a collection of channels that have become unprofitable (and possibly unsaleable) onto their shareholders, plus transferring existing debt to them as part of issuing the SpinCo stock to improve their own fiscal picture.
Nice job, Mr. Roberts.
Or maybe not. Being reported elsewhere that TEGNA is currently carrying out yet another massive wave of layoffs, particularly in marketing and production. Many, if not all of their “pay to play” local shows may be getting the ax. Sounds more like a company slashing costs in order to sell itself, instead of acquiring a bigger entity.
Yeah, not TEGNA.
This is where private equity comes in. Declining assets that will be milked and then sold for scrap.
In a different political world, I could see NBCU migrating MSNBC and CNBC to Peacock, but now they (especially MSNBC) is a hot potato I suspect they'd like to be finished with.
Admittedly off topic, but I’ve been going through numerous Reddit posts from insiders discussing the latest wave of TEGNA layoffs. Looks like they are going to thoroughly gut station staffs and centralize everything they can while relying heavily on AI. One poster described the new TEGNA CEO as an “Elon Musk wannabe.”
This sort of stuff makes me glad I’m retired from the broadcast biz and no longer have to put up with all the drama and uncertainty.
They can't just arbitrary shove debt on Spinco. Debt is usually tied to an asset. Somewhere on the loan or bond is a company name. If it is Comcast, I seriously doubt the holders of that debt will let it be transferred to "Spinco". The debts secured by a cable franchises will remain with that asset. The debt tried to NBC when they bought it from GE will stay with NBC or Comcast depending of which name is on the debt.
AT&T's "loading" up WBD was mainly costs secured by that business. Debts secured by their cell business remained with that business.
The most big time bond holders aren't stupid. They will do everything in their legal rights to make sure the bonds are backed up with a viable business. It's kinda like you finance a car for 60 months then a couple of years you decide you don't want it. You can just have anyone "pick up the payments" and get your name off the note.
There is something to be said about the "Warner Brothers" brand. It has survived ownership of Time, the AOL deal, and AT&T
AT&T's "loading" up WBD was mainly costs secured by that business. Debts secured by their cell business remained with that business.
The most big time bond holders aren't stupid. They will do everything in their legal rights to make sure the bonds are backed up with a viable business. It's kinda like you finance a car for 60 months then a couple of years you decide you don't want it. You can just have anyone "pick up the payments" and get your name off the note.
There is something to be said about the "Warner Brothers" brand. It has survived ownership of Time, the AOL deal, and AT&T
If you read the article about the spinoff, they say very directly that the new company will be "well capitalized."
The channels themselves throw off a lot of cash flow, so the problem isn't profitability. Just lack of growth. In fact, part of the reason for doing it as a spinoff is to avoid cap gains tax on the channels. The problem I see looking forward is the new company won't have the deeper pockets needed for content investment that come from being part of a much bigger entity.