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NBC Sports parent company Comcast has become the latest media giant to have a reserved public stance on potentially acquiring Warner Bros. Discovery, saying “the bar is very high” for any merger-related activity.
Following similar comments from Netflix last week, Comcast said early Thursday in an earnings call that its current corporate strategy remains solid, and it doesn’t necessarily require a deal for WBD, the parent company of TNT Sports.
“The bar is very high for us to pursue any [merger-and-acquisition] transactions given how strongly we feel about the businesses we have, the strategies we’re pursuing, and opportunities we have ahead of us, so that continues to be an important anchor point for how we think about things,” said Comcast co-CEO Mike Cavanagh. “You should expect us to look at things that are trading in our space, around our industry. It’s our job to try to figure out if there’s ways to add value.”
WBD formally put itself up for sale earlier this month in the wake of multiple and unsolicited offers, and interest in at least parts of that company has reportedly come from CBS Sports parent company Paramount, as well as Comcast and Netflix.
Comcast, however, continues to march forward as it is, and particularly lauded the beginning of its NBA coverage earlier this month.
“I think the strategies we have are really sound and durable without M&A,” Cavanagh said.
Broader Results
Comcast, meanwhile, said revenue and net income both fell in the third quarter, with bullish results last year from the Paris Olympics providing a tougher comparison for the company.
Revenue during the quarter fell 2.7% to $31.2 billion, while net income dropped 8.2% to $3.3 billion. The company also continued to see subscriber drops in its core broadband and cable businesses.
Excluding the bump from Paris last year, Comcast said its media revenue increased 4.2% in the current quarter.
The dynamic reflects the double-edged sword that major sports events such as the Olympics represent for Comcast. These tentpole events and leagues, like the NFL and NBA, are critical for the entire company and provide much of the most-watched content that Comcast has. The seasonal and periodic nature of those events, however, creates earnings-related issues such as this latest one, and Comcast stock fell more than 4% in Thursday trading.
That all said, February 2026 promises to be a historic period for the company with the Winter Olympics in Italy, Super Bowl LX, and the NBA All-Star Game all happening on NBC Sports in a matter of days. Along those lines, Cavanagh reiterated in an earnings call Thursday that “sports remains a cornerstone of our media business,” and fueled a record upfront sales period in the spring.
Peacock, however, remains flat at 41 million subscribers, showing the uphill climb it still has against much larger general-entertainment competitors in the streaming space.
“Peacock subs have been flat for three straight quarters, and it is still losing more than $900 million per year. Time is of the essence to merge Peacock and HBO Max,” tweeted LightShed Partners analyst Rich Greenfield.
