A new reported plan by media giant Comcast to spin off its cable assets including MSNBC and CNBC from NBC to increase profitability could run into a roadblock with Donald Trump set to take the reins of power in January.
According to a report from CNN, the Comcast reorganization plan won't require the approval from the DOJ or the Federal Communications Commission (FCC) but that doesn't mean the president-elect couldn't meddle with their financial maneuvering because, as media analyst Craig Moffet put it, "There are only two media entities that Donald Trump dislikes more than CNN. One is MSNBC and the other is NBC.”
CNBC analyst Jeffrey Sonnenfeld has already warned that Trump's “overt vindictiveness” could lead to regulators involving themselves in the financial details that could have huge implications for the success of the endeavor.
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As CNN's Matt Egan explained, "Comcast promises the new entity, for now known as SpinCo, will start with a growth trajectory and significant financial firepower. But there is already speculation it may need to bulk up to survive," before adding, "That could mean a sale to another entity or an acquisition. Either way, a future deal would likely require approval from the DOJ, potentially led by [potential AG Matt] Gaetz, and other Trump regulators. (The FCC’s blessing may not be required because SpinCo won’t include the NBC broadcast network)."
According to Moffett, "... media outlets traditionally described as liberal may have a very hard time doing deals,” with attorney Lee Petro agreeing and adding, "... it’s 'definitely possible' the DOJ reviews a future deal involving the spinoff cable channels 'to cause pain' to those networks," reports CNN on Thursday.
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