The potential separation of Comcast's cable networks will test the market's appetite for media reconfiguration.

• Comcast said it is considering separating or spinning off NBCUniversal's cable networks.
• If Comcast proceeds with the plan, it may lead to a broader restructuring of its cable properties.
• Despite the decline in revenue and profit, cable networks still generate billions.

NBCUniversal's cable networks may be separated or spun off, which could lead to a reconfiguration of the entire American media landscape if it proceeds with the idea.

Comcast's logic is clear: NBCUniversal's cable networks are no longer expanding, so the company is focusing on promoting Peacock, its growing but still money-losing streaming service. By separating its cable portfolio, Comcast can satisfy its investors by removing declining assets from its balance sheet.

On Thursday, Comcast's shares experienced a rise of over 3% following the release of their third-quarter earnings and conference call.

"Comcast President Mike Cavanagh stated during a call that the company is currently investigating the possibility of establishing a new, well-funded corporation, owned by shareholders and comprised of their robust collection of cable networks. However, specifics are not yet ready to be discussed, and the company will provide updates as soon as they have reached a definitive decision."

NBCUniversal's cable networks, including Bravo, E!, Syfy, Oxygen True Crime, USA Network, MSNBC, and CNBC, could be merged with another media company or could serve as a catalyst for a rollup, or consolidation, of cable channels at multiple companies. Despite executives emphasizing that the exploration is in its early stages, it could signal a broader industry consolidation.

The concept of a rollup isn't novel; it was previously discussed by media tycoon John Malone in 2016 during the acquisition of premium network Starz by Lionsgate.

Malone stated at the time that Lionsgate could acquire Starz and other independent cable network groups, which are not owned by larger media conglomerates such as AMC Networks or A&E Networks.

The noncash goodwill impairment charge of $9.1 billion reported by Warner Bros. Discovery earlier this year was triggered by the reevaluation of the book value of its TV networks segment, which devalued cable networks due to the shift in the media world's attention from traditional pay TV to streaming.

The decline in value of cable networks has created a new opportunity for a rollup, as companies such as Comcast and Charter Communications may choose to divest their declining cable assets and focus on streaming.

Despite the decline in the number of Americans subscribing to cable TV, media companies continue to maintain their cable networks, generating substantial profits.

If Comcast proceeds with a spin and experiences an increase in its overall valuation, it may establish a template.

In 2022, CNBC reported that Starz could potentially play a part in a media shakeup as a small media company looking to become the vehicle for a cable network rollup. However, Starz is set to separate from Lionsgate at the end of 2024.

Whether a publicly traded company that specializes in cable networks has a sustainable future is uncertain. Investors generally dislike declining assets, even if they have a lot of cash.

If Starz fails to achieve its goal of becoming a cable network consolidation, a private equity firm may still be interested in purchasing a collection of cable networks for profit. For example, Comcast has shown late interest in acquiring Paramount Global and has recently made several media-related investments, including the purchase of Yahoo.

Disclosure: Comcast owns NBCUniversal, the parent company of CNBC.