- Comcast Corp CMCSA CEO Brian Roberts is known for lining up a huge deal every five years.
- The company's last significant acquisition was U.K. TV broadcaster and broadband provider Sky Plc in 2018.
- Comcast already battled a slowdown in cable TV subscriptions while its broadband internet business succumbed to competition.
- The NBCUniversal division has been coping with the departures of CEO Jeff Shell over sexual harassment allegations and ad chief Linda Yaccarino, who quit for Twitter Inc. The company has yet to reach a consensus with Walt Disney Co DIS regarding the future of the Hulu streaming service.
- Roberts looks to own more of the content. His next big move will most likely involve Comcast's media division, which includes the NBC broadcast network, a stable of cable channels, the Universal and DreamWorks movie studios, streaming platforms including Peacock and a stake in Hulu, and theme parks, Bloomberg reports.
- Bloomberg and Bank of America analysts expect Comcast to chase the next leg of growth from gaming that adapts well with film, television, and even theme parks.
- The analysts see possible deals with Nintendo Co, Ltd NTDOY NTDOF, Take-Two Interactive Software, Inc TTWO, and Activision Blizzard, Inc ATVI.
- Roberts also faces pressure to boost its streaming presence.
- Analysts see the merger of NBCUniversal and Warner Bros. Discovery, Inc WBD, the home of CNN, the Food Network, and HBO's Succession, as a viable solution to drive its streaming business.
- However, the streaming merger poses regulatory hurdles, making gaming more attractive.
- The analysts expect Roberts' big move linked to a likely decision to sell Comcast's Hulu stake in 2024, leaving it with sufficient cash to invest in the business. After all, Comcast still has the Peacock streamings service to lean onto lest it relinquishes its stake in Hulu.
- In April, Comcast reported a first-quarter FY23 revenue decline of 4.3% year-on-year to $29.69 billion, beating the consensus of $29.34 billion.
- Price Actions: CMCSA shares are trading higher by 1.06% at $39.51 on the last check Friday.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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