No, Universal Studios Isn’t Getting a New Owner
In December 2009, Comcast announced its intent to purchase NBCUniversal, including the Universal Studios theme park empire.
The transaction wouldn’t earn governmental approval for more than a year, delaying the purchase until July 2011.
Photo: Comcast NBC Universal
Since then, Comcast has remained the owner of Universal Studios and the rest of NBCUniversal.
However, a shocking announcement this week has changed the nature of the business.
Photo: NBC/Universal
No, Universal Studios isn’t getting a new owner, though. Here’s what’s happening in and around your favorite theme park.
Meet the New Boss
The massive news in the corporate world this week involves Comcast’s shocking decision.
The owner of NBCUniversal will effectively split its product into two businesses.
Photo: NY Times
One is a new spinoff consisting primarily of cable ventures. The other will maintain the core of the former NBCUniversal.
In corporate terms, NBCUniversal will remain a business, while a new company, currently entitled SpinCo, will run everything else.
Image: Associated Press
No, SpinCo won’t be the entity’s real name. That’s a placeholder name standard in deals like this, but it underscores something here.
Comcast is panicking. Faced with eroding assets from the decline of cable television, the corporation has decided to cut ties.
Photo: NBC Universal
At the end of October, Comcast stated that it was weighing its options. Less than three weeks later, executives have chosen a spinoff.
That’s a sure sign of a poorly considered proposal, which is terrible news for the entities under the new SpinCo umbrella.
Thankfully, Universal Studios won’t be one of them, as I’m about to explain.
Comcast has cherry-picked the best assets from the NBCUniversal acquisition and will keep them as part of the main business.
We’ll discuss what just happened, but that’s the primary takeaway for Universal Studios fans.
Nothing is changing. Comcast will still remain the owner of Universal Studios via the NBCUniversal subsidiary.
Photo:Universal Orlando
The explanation for this decision is obvious, too. Comcast wants to keep all its money-making ventures.
By keeping Universal Studios in the fold, Comcast has tacitly acknowledged that the theme parks are among its top assets.
What Is Comcast Doing?
Here’s what Comcast is doing. As part of the NBCUniversal portfolio, Comcast owns a significant number of cable companies.
This list includes Bravo, CNBC, E!, Golf Channel, MSNBC, Oxygen, SyFy, and USA Network.
Image: CNBC
All those businesses are in sharp decline, which has caused Comcast to make a novel decision.
The corporation will spin off most but not all of its cable channels into an entirely new entity.
Image: NBC News
In a perfect world, this business will become the holding company for all cable television programming.
There’s a recent historical precedent for this, as the former Clear Channel gobbled up all the major radio stations at the turn of the century.
Universal
iHeartMedia now owns this entity, but the premise works the same.
Comcast hopes that it’s creating a new company that will eventually acquire all the major cable channels in existence.
Islands of Adventure
Clear Channel took this tactic as broadcast radio went into decline due to the rise of satellite radio and MP3 players.
SpinCo hopes to do the same thing with cable, starting with most but not all NBCUniversal channels. And here’s where the weirdness begins.
Photo: Deadline
Bravo won’t change to SpinCo, instead remaining as a part of Comcast’s holdings.
The company is doing this because Bravo content factors heavily into Peacock viewing habits. So, Comcast must keep Bravo to save Peacock.
Photo: billboard.com
Conversely, channels with NBC in the title, like CNBC and MSNBC, will no longer be part of the NBC brand.
This is one of the muddy parts of this spinoff that Comcast hasn’t considered enough yet, which explains why Wall Street is non-plussed.
But none of that matters for the purposes of our discussion. Here’s what does.
The Changes at Universal Studios
Photo: Universal
Again, Universal Studios isn’t getting a new owner. Comcast is keeping the theme parks in its primary NBCUniversal portfolio.
Still, there are outcomes from this deal that could feasibly impact the parks.
Photo: 10Best
For instance, let’s talk about a restaurant right by the entrance gate at Universal Studios Florida, NBC Sports Grill & Brew.
Peacock obviously intends to keep its live sports content, but that’s not automatic here.
Photo:insudeuniversal.net
Several events you’ve historically watched on secondary cable channels may not be a part of the core NBCUniversal brand.
Believe it or not, NBC Sports is one of them. Comcast wants to keep it, but that’s one of the reasons why this deal will take a year to complete.
Photo: Universal Orlando
Much remains to be determined, and some choices will depend on what arcane licenses and contracts dictate.
Similarly, that Wicked experience everyone adores is a part of the corporate synergy campaign.
Universal
Well, anything from SyFy, USA Network, E!, or the like is no longer under the Comcast umbrella.
That aspect could play a factor in future Halloween Horror Nights licensing attempts.
In short, when Comcast breaks up NBCUniversal, the parks will receive ripple effects, many of which we cannot even anticipate yet.
So, while nothing will change in the short term, the impact of Comcast’s decision could be felt for years to come.
Universal
Stay tuned to see what happens next in what’s sure to be a chaotic series of events. We’ll keep you updated as we learn more.
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