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.

Sign up for Kiplinger’s Free E-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
Get Kiplinger Today newsletter — free
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.
-
Stock Market Today: Stocks Are Mixed Before Liberation Day
Markets look forward to what comes with the reordering of 80-year-old global trade relationships.
By David Dittman Published
-
Stagflation: What It Is and Why Retirees Should Care
Stagflation — the economic bogeyman of the 1970's — may return to the US. Here's what it could mean to your retirement.
By Donna Fuscaldo Published
-
Stock Market Today: It's the Old Up-Down Again on Liberation Day
Markets look forward to what comes with the reordering of 80-year-old global trade relationships.
By David Dittman Published
-
Can a New Manager Cure Vanguard Health Care Fund?
Vanguard Health Care Fund has assets of $40.5 billion but has been ailing in recent years. With a new manager in charge, what's the prognosis?
By Nellie S. Huang Published
-
What You Don't Know About Annuities Can Hurt You
Lack of awareness leads many to overlook these potent financial tools, and with the possibility of running out of money in retirement, that could really hurt.
By Ken Nuss Published
-
Three Keys to Logical Investing When Markets Are Volatile
Focusing on these market fundamentals can help investors stay grounded rather than being swayed by emotion or market hysteria.
By Dennis D. Coughlin, CFP, AIF Published
-
Yes, the Markets Are Spooked, But You Don't Have to Be
It's human nature for investors to freak out in a downturn. But with a little discipline, you can overcome the urge to sell and stay focused on long-term goals.
By Jimmy Lee, IAR Published
-
Remembering Bogle: A New Standard for Municipal Investing
Improvements in technology, data, systematic trading and risk analytics have led to more successful municipal indexing.
By Paul Malloy Published
-
Stock Market Today: Stocks Are Mixed Before Liberation Day
Markets are getting into the freewheeling rhythm of a second Trump administration.
By David Dittman Published
-
How to Invest in Sports
If it's springtime, Forbes is out with its annual list of baseball franchise values. The billions involved might make you wonder how to invest in sports.
By David Dittman Published