Analyst Green-Lights Comcast Spinoff: How CMCSA's Restructure Plan Could Unlock Significant Shareholder Value

Analysts are seeing Comcast Corp‘s (NASDAQ:CMCSA) plan to restructure its media empire as a positive for investors. Craig Moffett, the senior managing director at MoffettNathanson has said that “investors have yearned for this” and carving off the cable television business will be good for its growth prospects.

He also said how the decline in the cost of capital to set up the cable infrastructure, is the only revolutionary aspect of this sector because building fiber in lower-density areas was “enormously expensive.”

What Happened: Comcast Corp will be spinning off most of its cable television networks including MSNBC and CNBC into a separate publicly traded company.

The new company, to be led by current NBCUniversal Media Group chairman Mark Lazarus as CEO, will house popular channels including USA, Oxygen, E!, Syfy, and Golf Channel. NBCUniversal will retain control of Bravo, the NBC broadcast network, Peacock streaming service, NBC Sports, and Universal theme parks, reported CNN.

Also read: Comcast Plans Major Cable Networks Spinoff, MSNBC And CNBC To Form New Public Company: Report

The move comes as traditional cable networks face increasing pressure from streaming services. Travis Hoium, the founder at Asymmetric Investing, in an X post, highlighted how Comcast’s total domestic video customers have declined from 19.4 million ...

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