Comcast is undergoing a significant corporate restructuring that will separate two prominent television networks, CNBC and MSNBC, from their historical ties to NBC News.
This shift raises questions regarding the implications for viewers and employees alike, as the networks’ connection to NBC News will effectively be severed. Mark Lazarus, who is set to lead the newly formed company that will manage the cable networks, reached out to MSNBC staff during a recent conference call to address their concerns.
The spinoff will not only affect CNBC and MSNBC, but will also include other cable networks such as USA, Oxygen, E!, SYFY, and the Golf Channel, as Comcast recognizes the growing prominence of streaming services and the financial burden posed by traditional cable in an evolving media landscape.
Historically, these networks have experienced a remarkable transformation from fledgling channels to lucrative entities before finding themselves facing relegation.
The complexity of this transition will vary, with some basic questions arising, such as whether MSNBC will retain its name.
Lazarus, now heading the NBC Universal Media Group, will assume the role of CEO of the new cable network entity, provisionally referred to as “SpinCo.” Meanwhile, Cesar Conde, the chairman of NBC Universal News Group, will maintain his responsibilities regarding NBC News and local news operations but will oversee neither MSNBC nor CNBC going forward.
The management’s presence, including that of chief operating officer Anand Kini, reassures analysts about the company’s future trajectory, as Jessica Reif Ehrlich from Bank of America suggests it’s not merely a matter of offloading undesirable assets; rather, it reflects the expertise of seasoned executives.
At MSNBC, there are numerous uncertainties surrounding its future operational framework, especially concerning its physical location since its staff and studios share office space with NBC News in Rockefeller Center.
This presents questions about whether they will remain there or relocate, as discussed by Lazarus with the employees.
The intertwined nature of MSNBC and NBC News has previously led to tension, primarily due to MSNBC’s liberal commentator focus, contrasting with the impartiality espoused by NBC News. The situation is further complicated by staffing overlaps; many NBC journalists regularly contribute to MSNBC programs.
There is uncertainty about the future of this arrangement and whether MSNBC will need to develop its own news gathering capabilities or increase its focus on commentary.
The atmosphere at MSNBC is one of anxiety as viewership has notably declined since Donald Trump’s election. This trend is typical for networks skewed toward specific political perspectives, which often experience dips when their favored candidates are no longer in power.
While historical patterns indicate that viewers may return, the outlook becomes murky concerning a potential second Trump presidency, especially after threats directed at MSNBC from Trump associate Steve Bannon.
Launching in 1989, CNBC and MSNBC followed a path that connected them closely to NBC, sharing various types of operational support that will require reevaluation during this transition.
Although CNBC has operated with more independence from NBC News due to its separate physical location in New Jersey, it still frequently collaborates with NBC News.
As the media landscape shifts, Lazarus recognizes the emotional complexity surrounding this change but also emphasizes the benefits of being part of a “well-funded startup.”
Despite being traditional cable channels, there is optimism about their prospects, as Comcast executives note that many of these networks generate substantial profits independently.
Furthermore, Andrew Ross Sorkin from CNBC raised questions about how these profits could be reinvested, specifically whether they could facilitate acquisitions or strengthen internal operations.
A suggestion from analyst Ehrlich is to retain the established names of these networks, capitalizing on their strong brand recognition.
