Comcast President Mike Cavanagh said Thursday that the company is exploring spinning off its cable network business.
During the company’s third-quarter earnings call with investors, Kavanagh said the company was exploring the creation of “a well-capitalized new company owned by our shareholders and comprised of our strong cable network portfolio.” ”.
He added that the possible separation does not include broadcast network NBC and streaming service Peacock. NBCUniversal’s cable network portfolio includes Bravo, E!, Syfy, Oxygen True Crime, USA Network and news networks MSNBC and CNBC.
The company lost 365,000 cable customers in the third quarter.
“Like many of our media peers, we are experiencing the impact of transformation in our video business and have been examining the best path forward for these assets,” Kavanagh said.
“We’re not ready to talk about any details yet, but we will get back to you when we come to a firm conclusion,” he said.
Comcast shares rose more than 6% in premarket trading.
The comments come as millions of customers continue to flee traditional pay-TV bundles in favor of streaming. Comcast has been strengthening Peacock, which got a boost in the third quarter when it exclusively broadcast the Paris Summer Olympics.
Revealed: Comcast owns NBCUniversal, the parent company of CNBC.
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