Comcast to proceed with plans to spin off its cable channels

Comcast is moving forward with plans to spin off its NBCUniversal cable television networks including MSNBC and CNBC, sources say, shedding a once core part of the business that has been a casualty of the streaming video revolution.

The company last month told investors it was evaluating hiving off its cable networks into a separate company owned by Comcast’s shareholders.

“We think there could be an opportunity to play some offense,” said Comcast President Michael Cavanagh said during the company’s third quarter investor call.

The new venture would be well-capitalized, said one source, who added on Tuesday that it would be positioned to acquire other cable networks if the industry consolidates.

Comcast would retain NBCUniversal’s NBC broadcast television network, its film and television studios and its theme parks, as well as its Peacock streaming service. Comcast also would retain its Xfinity broadband service.

The spinoff would be comprised of the cable news outlets and other cable networks, such as USA, E!, Syfy and the Golf Channel, according to the Wall Street Journal, which first reported the decision.

These still-profitable networks generated about $7 billion in revenue over the last 12 months, the Journal reported.

The cable networks were an attractive lure when Comcast completed its takeover of NBC Universal in 2011, but the rise in popularity of streaming services has eroded cable TV subscriptions and viewership.

In August, Warner Bros Discovery wrote down the value of its television assets by $9 billion. Paramount Global followed suit, taking a $5.98 billion charge for its television networks that same month. Walt Disney evaluated shedding its cable networks earlier this year, but ultimately rejected the idea.