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Comcast's cable network spinoff may be a signal to the media industry for necessary change

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Comcast may be proceeding with a transaction as a signal to the rest of the media industry that consolidation is necessary.

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It's also unclear if the spun-off company will flourish as a publicly traded entity. If Comcast is shedding cable networks because Wall Street doesn't like them, why would shareholders want a company that consists of declining assets?decided not to spin its cable assets. The company considered it and ultimately decided the earnings lost from spinning profitable networks would trump any potential multiple expansion from a spin.

Profits for SpinCo can be reinvested into businesses including CNBC and MSNBC instead of being waylaid toward Peacock and NBCUniversal's theme parks. "There's simply not enough revenue in these businesses to cover the costs anymore," said Candle Media co-CEO and former Disney executive Kevin Mayer in an interview."There has to be consolidation now. It's Econ 101.""If the best content is going to win, there needs to be some consolidation in order to have these businesses be stronger and to have a better consumer experience.

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