Let’s get this out of the way first: Comcast co-CEOs Brian Roberts and Mike Cavanagh told Wall Street analysts Monday that the proposed spinoff of NBCUniversal is “absolutely not” about setting each side of the company up for a sale.
Indeed, their argument is that the split will give each company a stronger hand to to play to cut deals or expand, splitting the debt load accordingly.
But that isn’t stopping Wall Street from salivating about what comes next. Deals may not happen in the next year or two (for tax purposes, if nothing else), but analysts see potential M&A for both the connectivity business, and the media and entertainment business.
As Wolfe Research analyst Peter Supino wrote Monday: “We doubt that this breakup will occur. Instead, we expect one or both Comcast units to merge with peers or competitors. We believe the breakup plan is strategic to Comcast because it is a legitimately good idea that also strengthens Comcast’s negotiating position with partners who will not want to wait 1-2 years for an otherwise completed spin-out to ‘season’ for tax purposes.”
Below, The Hollywood Reporter breaks down the assets of each side of the split, and what companies could pursue deals.
