NBCUniversal & Comcast Split into 2 Companies

[Brian G.]

Comcast to spin off NBCUniversal and Sky into separate company

The move announced Monday will separate Comcast’s media and entertainment assets from its broadband and wireless business.

www.nbcnews.com

 

[PerceptiveCoot]

Well this might explain some things.

I'd expect a lot of projects to start changing based on this new financial reality.

I'd also expect Netflix to start circling around for a potential merger, maybe even a handoff at the end of the year. The parks business is probably a more valuable diversification of their company's business than Warner's pure content play.

 

[TheCodeMan95]

Curious to see how much this affects the parks.

At least we already have Epic, huh guys?

 

[Viator]

Yeah Netflix feels like someone who'd want this pie.

 

[PerceptiveCoot]

Curious to see how much this affects the parks.

At least we already have Epic, huh guys?

On the one hand, the parks are stable revenue generators that are expanding, but we've seen that entertainment companies have robbed Peter to pay Paul when it comes to their streaming services.

Luckily, streaming services are no longer the hot commodity on Wall Street that they once were, and I don't think NBC Universal would be blinkered enough to try to bet their companies' financial future on Peacock.

Which is why I think Netflix (unfortunately, consolidation is bad!) makes sense here. Unlike Warner Bros, Universal doesn't really have a streaming business. It addresses Netflix's deficiencies in experiences, sports, and animation (also things Warner Bros didn't have). Additionally, NBC Universal doesn't have the albatross of cable around its neck.

Finally, like Disney and Fox, the parks give you some IP keychains to dangle in front of peoples' faces (One Piece and K-Pop Demon Hunters lands?)

 

[MAC]

This is really disappointing. Before Comcast, the owners of NBCUniversal rarely ever valued the parks and thus, never truly invested in it. When Comcast came through, that's when things really changed. While I think the parks will continue to be treated as a priority and asset, Comcast leadership truly viewed Universal Parks & Resorts as a differentiator in the market and poured capital dollars into the parks and resorts to help drive additional guests and thus, revenues. If it is going to be spun off and NBCUniversal is going to be its own standalone company as opposed to owned by someone else, this could continue as I believe NBCUniversal leadership has believed in these same goals. The issue becomes more about dollars that are available and where they invest. UPR could see a decrease in funding in that case.

Someone else acquires NBCUniversal? It comes down to their appetite to invest billions each year. While destination vacationing like Disney and Universal have proven strong, in the face of difficult consumer trends on the horizon, a decision could be made to pull back any spending and just reap the benefits (especially to pay off debts).

This could be a frustrating season incoming for UPR.

 

[Jerroddragon]

I hope it works out.....change like this can really go either way.

 

[Evan]

I wonder if this is why the budget tap for Universal Kids seemed to be turned way down?

 

[xtpower]

I wonder if this is why the budget tap for Universal Kids seemed to be turned way down?

Doubt it. Otherwise they never would've started Universal UK.

 

[Evan]

Doubt it. Otherwise they never would've started Universal UK.

Oh gosh. Didn’t even think of UK and what this could mean for it now …

 

[xtpower]

Oh gosh. Didn’t even think of UK and what this could mean for it now …

I don't think it'll have a major effect, contracts with the government have been signed and groundworks are on the cusp of starting. The long-term benefits of the Park are such that unless NBCU loses their minds I doubt anything much changes.

 

[Evan]

I don't think it'll have a major effect, contracts with the government have been signed and groundworks are on the cusp of starting. The long-term benefits of the Park are such that unless NBCU loses their minds I doubt anything much changes.

Oh I think it's being built, but it's a question of money. How much debt is Comcast going to saddle NBCU with?

 

[rageofthegods]

I don't know how a pure play media company that isn't Disney or Netflix survives the next five years tbh, even one with a large theme park business. There's nothing like the cable fee business that kept companies afloat in the 2000s. Even Disney gets a boost from ESPN. Peacock has never been profitable in its existence.

Idk, kinda worried ngl.

 

[RFRees]

I don't know how a pure play media company that isn't Disney or Netflix survives the next five years tbh, even one with a large theme park business. There's nothing like the cable fee business that kept companies afloat in the 2000s. Even Disney gets a boost from ESPN. Peacock has never been profitable in its existence.

Idk, kinda worried ngl.

I'm just generally speculating but wouldn't the Universal movies and NBC broadcast TV be profitable?

 

[JonsMovies]

If this is being done so that Netflix can come into acquire NBCUni, perhaps they'll act as the modern Comcast. Being the market leaders in streaming, expanding their footprint to physical experiences that only the existing Uni assets can provide, may be the next logical step in their growth.

 

[Casper Gutman]

Well, crud.

 

[rageofthegods]

I'm just generally speculating but wouldn't the Universal movies and NBC broadcast TV be profitable?

Relying on the film business is tricky because one bad year can slam you into the red. The thing that made cable great business wasn't just that it was lucrative, it was that it was predictable as well.

Broadcast will help but again, they're gonna be paying a fortune for sports rights between NBA, NFL and MLB.

 

[Cup_Of_Coffee]

Idk how these things work but Netflix I am sure would want this. They’re trying to include more live events in their platform, SNL, Tonight Show, Emmy’s, etc, help with all that. For sports, Sunday Night Football, future Super Bowls, NBA, WNBA, Baseball, major Golf events, heck, the Olympics…… all that plus Universal, Dreamworks, and Illumination IP on their platform guaranteed, plus Theme Park revenue???

I hate how only a few companies own everything. It’s a sign of dark times.

This unfortunately makes a lot of sense for Netflix though.

 

[Evan]

Idk how these things work but Netflix I am sure would want this. They’re trying to include more live events in their platform, SNL, Tonight Show, Emmy’s, etc, help with all that. For sports, Sunday Night Football, future Super Bowls, NBA, WNBA, Baseball, major Golf events, heck, the Olympics…… all that plus Universal, Dreamworks, and Illumination IP on their platform guaranteed, plus Theme Park revenue???

I hate how only a few companies own everything. It’s a sign of dark times.

This unfortunately makes a lot of sense for Netflix though.

I guess I wonder if the powers the be would even allow that deal to go through, if there was one ...

 

[PerceptiveCoot]

Relying on the film business is tricky because one bad year can slam you into the red. The thing that made cable great business wasn't just that it was lucrative, it was that it was predictable as well.

This is why Wall Street has also finally come around on the parks business after years of overleveraging them to fund other businesses. They provide predictable annual revenue, expansion operates in fairly obvious ways, and the mechanisms for success are less opaque and more broadly applicable than the mechanisms behind what makes good entertainment.

I will say Universal has largely been fiscally responsible with their film business, and haven't had the spate of bombs and failures that have plagued other companies like Disney, Warner, Paramount, Sony, etc. The bigger problem is going to be their debt load and the streaming service, each of which will exacerbate the issues with the other.