Comcast spinning off media divisions is clearly the right move, says Oppenheimer's Timothy Horan

Summary

Comcast's plan to spin off its media properties including NBCUniversal is seen as the right strategic move, but the market reaction was muted after initial short covering. Charter shares soared on speculation of a Comcast-Charter merger, though regulatory hurdles make a deal uncertain. Starlink's broadband and mobile ambitions pose a growing threat to telecom stocks. Netflix shares have reversed gains, with some eyeing NBCUniversal as a possible acquisition target despite business differences.

• Comcast spins off NBCUniversal, a move Oppenheimer's Timothy Horan calls clearly right but notes the assets are in secular decline.
• Charter surged 25% on Comcast-Charter merger speculation, but Alex Sherman warns of significant regulatory obstacles including DOJ and state approvals.
• The blocked Comcast–Time Warner Cable deal 11 years ago serves as a precedent for tough antitrust scrutiny.
• Starlink is projected to grow from 4 million to 20 million US broadband subs and enter mobile, creating a huge overhang for telecom stocks.
• Telecom stocks are under pressure, with Verizon and T-Mobile mentioned as potentially vulnerable to Starlink's expansion.
• Netflix gave back gains after walking away from WBD; some investors now see NBCU as the next target, though the theme parks and broadcast assets complicate a deal.