Comcast Calls It Splits With NBCUniversal

Comcast isn’t fully cutting the cord, but it did buy a cable splitter. The media company said Monday it’ll spin off NBCUniversal from its broadband and wireless biz. NBCUniversal includes the streaming service Peacock; TV networks NBC, Telemundo and Bravo; EU media biz Sky; and Universal’s studios and butterbeer-serving theme parks. 

Investors applauded the move, boosting the stagnant stock nearly 17% Monday morning before paring gains later in the day. 

Preening Streaming

Comcast completed its takeover of NBCUniversal from General Electric in 2013, spending nearly $23 billion in two deals to acquire the whole company. Streaming was still in its early days, making a tie-up of content producers and distributors more appealing. The media landscape has changed drastically since then, with streaming finally overtaking cable and broadband in 2022. 

And as more people cut the cord, analysts questioned whether content and distribution would be better off with different strategies and goals. Comcast has already started to slough off its media side, spinning off properties including CNBC, Oxygen and Fandango into a new company called Versant earlier this year. Now it’s fully committing to cutting its bifurcated business into two halves:

• Comcast’s broadband and wireless biz, which will be separated from the earnings pie, made up more than half of the company’s revenue last year. At the same time, the business has been bleeding customers as rivals including Verizon and T-Mobile take over more of the connectivity market. The other side of the pie consists of a 21% revenue slice from media properties, including NBC and Peacock, and smaller pieces from studios and theme parks.
• Separating the two halves could help Comcast develop each separately, especially as it puts more focus on streaming. NBCUniversal execs have said Peacock will turn its first profit in the second quarter, after the “Love Island USA” streamer has fallen far behind rivals including Netflix, Disney+ and Max — all of which have already become profitable. Peacock’s pinning its hopes on major sports events like the LA Olympics to set it up for future success. 

Plot Twists: There’ll be no lack of small-talk topics at the media-focused Sun Valley Conference next week, where execs are known to discuss future deals on the golf course. Paramount is moving forward with its purchase of Warner Bros. Discovery, Fox is scooping up Roku, and Nexstar is acquiring Tegna in a TV and local news tie-up. Some analysts think Comcast’s split-up sets it up to get in on the M&A action — Charter and Comcast could consider merging (Charter’s stock soared yesterday, too) while Netflix might be tempted to buy NBCUniversal after failing to nab Warner Bros Discovery. Comcast’s chairman said selling its businesses isn’t on his priority list.

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