What the Comcast Cable Spinoff Means for Investors
Comcast has announced plans to spin off select cable networks and digital assets into a separate publicly traded company. Here's what you need to know.


Comcast (CMCSA) announced Wednesday that it will spin off select cable television networks, including USA Network, CNBC, MSNBC, Oxygen, E!, SYFY and the Golf Channel. The spinoff includes some of CMCSA's digital assets, including Fandango, Rotten Tomatoes, GolfNow and SportsEngine. It will create a new publicly traded company called SpinCo.
"When you look at our assets, talented management team and balance sheet strength, we are able to set these businesses up for future growth," said Comcast CEO Brian Roberts in a statement. "With significant financial resources from day one, SpinCo will be ideally positioned for success and highly attractive to investors, content creators, distributors and potential partners."
SpinCo will be a pure-play news, sports and entertainment business reaching approximately 70 million households and will be led by Mark Lazarus, the current chairman of NBCUniversal Media Group, as CEO.
From just $107.88 $24.99 for Kiplinger Personal Finance
Be a smarter, better informed investor.

Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
"As a standalone company with these outstanding assets, we will be better positioned to serve our audiences and drive shareholder returns in this incredibly dynamic media environment across news, sports and entertainment," Lazarus said. "We see a real opportunity to invest and build additional scale and I'm excited about the growth opportunities this transition will unlock."
In the trailing 12 months, SpinCo generated approximately $7 billion in revenue, Comcast said, adding that the company will have the same dual-class share structure as at CMCSA.
Comcast said it expects the spinoff to be completed in approximately one year, and is subject to approval by its board of directors, regulatory approvals and other closing conditions.
Is Comcast stock a buy, sell or hold?
Comcast is up nearly 16% since mid-June, but shares are flat on a year-to-date basis. Still, Wall Street is bullish on the communication services stock.
According to S&P Global Market Intelligence, the average analyst target price for CMCSA stock is $48.17, representing implied upside of roughly 13% to current levels. Additionally, the consensus recommendation is Buy.
But not everyone is all-in on the large-cap stock. Financial services firm Bernstein has a Market Perform rating (equivalent to a Hold) and $48 price target on CMCSA.
"We maintain our Market-Perform rating for Comcast with a price target of $48," wrote Bernstein analyst Laurent Yoon in a note this morning.
The spinoff news creates upside to this price target and the share price, but "the magnitude of the upside, or even a downside, depends on the structure as well as potential external parties involved. For now, it's too early to tell," the analyst adds.
Related Content
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.

Joey Solitro is a freelance financial journalist at Kiplinger with more than a decade of experience. A longtime equity analyst, Joey has covered a range of industries for media outlets including The Motley Fool, Seeking Alpha, Market Realist, and TipRanks. Joey holds a bachelor's degree in business administration.
-
Stocks Slide to Start September: Stock Market Today
Seasonal trends suggest tough times for the stock market as we round into the end of the third quarter.
-
Here's What You'd Have If You Invested $1,000 Into Sherwin-Williams 20 Years Ago
Sherwin-Williams stock has clobbered the broader market by a wide margin for a long time.
-
Stocks Slide to Start September: Stock Market Today
Seasonal trends suggest tough times for the stock market as we round into the end of the third quarter.
-
If You'd Put $1,000 Into Sherwin-Williams Stock 20 Years Ago, Here's What You'd Have Today
Sherwin-Williams stock has clobbered the broader market by a wide margin for a long time.
-
Where is the Foreign Dividend Boom Headed?
It's been a golden six months for foreign dividend stocks, but can any be relied on for predictable income going forward? Here are some options.
-
The Unsung Hero of Aisle 5: A Tale of Forgotten Change and Compassion at the Supermarket
This supermarket manager went above and beyond to help when a child forgot her change at the checkout counter. You might be surprised at some of the complications that supermarkets face when it comes to customers' forgotten change.
-
Train, Integrate, Retain: A Strategic Playbook for Adviser Onboardings
Build a thriving practice by training new advisers with clear goals, structured processes and consistent mentorship for strong team growth.
-
I'm a Financial Professional: Here Are Four Ways You Can Use Debt to Build Wealth
Using debt strategically, such as for homeownership, education and more, can lead to greater financial stability and growth.
-
Five Key Wake-Up Calls for Ambitious Business Owners, From a Biz Specialist
Your personal financial plan needs to include a formal exit strategy for your business, or you could be in trouble.
-
I'm a Retirement Psychologist: Here's Why Doing What You 'Ought' in Retirement Beats Doing Whatever You Want
True retirement freedom isn't about simply doing whatever you want, but about finding purpose and direction through commitments that align with your deepest values and allow you to contribute meaningfully.