Comcast confirmed on Thursday, during its third-quarter earnings call, it may opt to restructure its cable network portfolio as a new business entity separate from its parent company. This proposal, however, would not include either the broadcast network NBC or the streaming platform Peacock, as clarified by Comcast President Mike Cavanagh during the call.
Cavanagh justified the consideration citing the changing dynamics of the media landscape, "Much like our media contemporaries, we are negotiating the transitional phases of our video businesses and are assessing the optimum path forward for these assets."
He further added that the proposed restructuring would likely result in the creation of a new, sufficiently funded company. This entity will still remain under the ownership of Comcast's current shareholders and would consist of the company’s robust collection of cable networks. He suggested that such a move could potentially open new opportunities in the constantly evolving media industry and serve the interests of the shareholders.
Comcast is also contemplating potential partnerships in the streaming sector. The news arrives as the company is battling the impact of the growing cord-cutting trend, which was highlighted by a year-over-year loss of 365,000 cable TV customers in the third quarter.
Despite this, the company's quarterly revenue, fuelled by its coverage of the Summer Olympics in Paris, saw a 6.5% increase, hitting $32.07 billion. This surpassed the consensus expectations of Visible Alpha. However, the earnings per share (EPS) of $0.94 fell short of the estimated targets. Comcast's shares demonstrated a 2% increase on Thursday morning, although are down by approximately the same margin this year.