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Comcast-NBCUniversal Cable Split Draws Mixed Reaction From Wall Street; Stock Stages Late Rally To Post Slim Gain – Update
Comcast's decision to spin off NBCUniversal cable networks has drawn some applause but also some skepticism among Wall Streeters and industry observers.
Comcast ‘s decision to spin off NBCUniversal cable networks into a new publicly traded entity has drawn applause in some corners of the financial world, but some investors are expressing skepticism. Brian Wieser, a former analyst and ad agency executive who now runs consulting and advisory firm Madison & Wall, said the move appears to be “ dis-synergistic.” In an assessment circulated to clients and subscribers to his newsletter, he wrote that advertising revenue could take a hit, at least in the near term, and that could in turn lead to distribution issues. Discovery and Paramount Global recently took a combined $15 billion in write-downs on the value of their cable networks, so there would appear to be potential sellers looking to engage with SpinCo.
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