Morningstar issued an analysis following Comcast's announcement to separate its media and technology businesses, identifying potential acquirers for an independent NBCUniversal. The firm estimated a $60 billion price tag for NBCU's assets and named Apple, Amazon, and Netflix as companies that could pursue the acquisition once the separation takes effect by 2027. Morningstar stated the separation will unlock maximum value for both entities as public companies. NBCU owns one of the world's five major movie studios, along with associated franchises, theme parks, and a domestic streaming service that includes sports rights to popular events.
Morningstar Identifies Apple, Amazon, and Netflix as Potential NBCU Acquirers
Morningstar analyst Matthew Dolgin stated that Apple, Amazon, and Netflix could be interested in NBCU's assets. The firm's analysis noted these companies would gain access to one of the top five Hollywood studios, along with its associated franchises, theme parks, and a domestic streaming service with sports rights to popular events. Morningstar said in its note that separating the businesses will allow each to attract suitors, pursue asset sales, and make striking partnerships easier than as a combined firm. The firm stated it has long held that combining the cable broadband and media businesses provides minimal operational benefits.
Analyst Cites Netflix's Strategic Fit with NBCU Assets
Morningstar's analysis stated Netflix's financial outlook would change materially if an NBCU acquisition materializes. The firm argued Netflix could use NBCU's theme parks, movie studio, and sports programming to spur additional growth. Morningstar noted Netflix was willing to acquire Warner Bros. Discovery's streaming and studios unit in an $82.7 billion deal. The analysis stated NBCU's linear networks—NBC and Bravo—have broadcast rights to the Olympics in the U.S. and Sunday Night Football, complementing Netflix's strategy to carry notable sports events. Morningstar said holding these networks should not be a burden and Netflix could divest them later if it wanted to.
Comcast Shares Rise Following Separation Announcement
CMCSA shares traded marginally higher in Tuesday's premarket, following its best day in more than a decade. The stock was among the top ten trending tickers on Stocktwits. Retail sentiment on CMCSA turned 'bullish' from 'neutral' over the last 24 hours on Stocktwits, while sentiment remained 'bullish' on NFLX. CMCSA stock has declined more than 32% over the last 12 months, while NFLX has fallen roughly 45% over the same period, underperforming the S&P 500.
FAQ
What price did Morningstar estimate for NBCUniversal's assets?
Morningstar estimated a $60 billion price tag for NBCU's assets following Comcast's announced separation of its media and technology businesses.
Which companies did Morningstar identify as potential acquirers of NBCUniversal?
Morningstar analyst Matthew Dolgin identified Apple, Amazon, and Netflix as potential suitors for an independent NBCUniversal once the separation takes effect by 2027.
What assets does NBCUniversal own according to Morningstar's analysis?
NBCU owns one of the world's five major movie studios, along with associated franchises, theme parks, and a domestic streaming service that includes sports rights to popular events including the Olympics and Sunday Night Football.
