(Bloomberg) -- Comcast Corp. is working with investment bank Morgan Stanley to evaluate options for its cable networks, according to people familiar with the matter, after announcing this week it’s considering divesting the business.
Morgan Stanley is helping Comcast, a cable provider and media company, study scenarios for the networks, the people said. Comcast owns cable networks including MSNBC, CNBC, E! and Bravo, among others. It hasn’t specified which ones might be split off, and it could still decide to keep them.
Comcast President Mike Cavanagh said Thursday that the media conglomerate has been deliberating whether to separate its cable networks into a new company that would go to shareholders.
The goal would be to position the new business to “take advantage of opportunities in the changing media landscape and create value for our shareholders,” Cavanagh said, without offering further details.
Representatives for Philadelphia-based Comcast and Morgan Stanley declined to comment.
Comcast’s cable networks business has been in decline as consumers cancel their cable TV subscriptions, creating a drag on the stock. Separating it could help Comcast unlock a higher valuation for itself.
If separated, the business could act as a consolidator of other cable networks or draw interest itself from others. Comcast could spin off the business and combine it with other cable network businesses through a tax-friendly merger structure known as a Reverse Morris Trust, some of the people said.
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