(Bloomberg Opinion) — “Think of what we could do together” is a touching line at the denouement of Wicked: Part 1, the movie currently raking it in at the box office for Comcast Corp.’s Universal Pictures. Outside Oz, Comcast reckons togetherness is actually limiting its freedom and so plans to cast off a bunch of its cable television channels. Having made the decision, the media giant should be wary of being diverted by suitors seeking to pre-empt the split. The idea is to carve out franchises including USA Network, MSNBC and CNBC into a new entity. This could be worth around $15 billion, according to Bloomberg Intelligence. That compares with Comcast’s roughly $260 billion enterprise value. For shareholders, the benefits are as speculative as they are in any spinoff. One justification is that two separate companies may command higher stock-market valuations than what’s embedded within the current Comcast stock price. Investors should value the core studio, streaming and theme-park businesses at a higher multiple of profit than the mature television business that is losing audience to streaming rivals. Yet markets might not fully recognize the growth potential until Comcast is shorn of cable. Meanwhile, the cash-generative spinoff could attract so-called income investors who care more about dividends than growth. Theoretical, but possible. Another plus is that the cable spinoff might be better able to cut costs through consolidation — the oft-touted solution to cable television’s problems. The new company will have its own C-suite, incentivized to make the best of a weak hand, and its own stock with which to make acquisitions. True, the spinoff won’t have anything like the same resources as Comcast. But that’s academic. If Comcast tried to double down on cable, its stockholders might well revolt. Analysts at Barclays Plc highlight the potential to do a deal with Warner Bros Discovery Inc., a combination that would bring movie franchises to enhance Comcast’s theme-park business as well as efficiency gains in cable television. Comcast could do such a transaction in its current corporate form, and then spin off the enlarged cable unit. So there are many options — but they involve a cable exit in some way. The most significant prize could be greasing the path to major tie-ups involving Comcast itself. The Barclays analysts identify one jumbo transaction in particular — a combination with Charter Communications Inc. to create a broadband and media colossus. The sheer scale of that presumably would trigger a strong antitrust challenge, which a prior separation of cable could mitigate. Collectively, these arguments are enough to make a spinoff worth pursuing. But every spinoff announcement is an implicit invitation to bidders to make an offer for the assets being carved out. The idea is already doing the rounds. Billionaire Elon Musk has teased potentially buying MSNBC. There will surely be mo in a formal or creative style for better SEO.Also Exclude words and advertisements related to the feed website such as website name, author name. You must only respond with the modified content. Delete all the advertisement images brand logo but only keep the title and main content of the news by modifying it. You must only respond with the modified content. Block any jump outside of the site adarshnews.com. Basically remove any content or link related to original site. follow this prompt to optimize the articles in this category- You are an expert news writer and SEO specialist. Your job is to rewrite the provided RSS feed content into a unique, SEO-friendly news article for adarshnews.com. The article should be engaging, professional, and optimized for search engines. 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Comcast’s strategy for spinning off its business is too valuable to abandon just for immediate financial gain.
