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As media giants grapple with rising interest rates, regulatory pressure, and tariff uncertainty, consolidation is on pause — at least for now.
Starz sees opportunity in the chaos. The newly independent premium cable and streaming network is positioning itself to potentially acquire distressed assets and provide tech support to traditional players caught flat-footed by the streaming revolution.
"There'll be a great shedding first, and then there'll be a reconnecting of other things," Starz CEO Jeff Hirsch told Yahoo Finance on Monday. He pointed to a period of strategic soul-searching across the industry. "A lot of folks are inward-looking and trying to figure out who they are and what they do well."
"Once they figure that out, then I think they'll shed assets," the head of the Colorado-based company added.
It's been a turbulent time for legacy media, which has heavily invested in expensive streaming endeavors amid the mass exodus of pay TV consumers.
Prior to the cord-cutting phenomenon, linear advertising and cable affiliate fees had consistently boosted revenues. But as ad buyers now flee traditional TV channels in favor of digital options like streaming, companies are beginning to realize they may never realize those economics again. These pressures have resulted in waves of layoffs across the industry as companies double down on streaming through newly launched ad-supported tiers, bundled offerings, and price hikes.
That has triggered a broader recalibration of portfolio strategy and, according to Hirsch, is setting the stage for a sweeping wave of divestitures across the industry.
For example, later this year, Comcast (CMCSA) plans to spin off most of its cable properties into a new company, dubbed Versant, while Warner Bros. Discovery (WBD) recently underwent a corporate restructuring to separate its legacy networks, including CNN, TBS, TNT, HGTV, and the Food Network, from growth drivers like studios and its streaming platform Max.
Outside of Comcast and Warner Bros., Disney (DIS) has also explored cleaving off its traditional TV assets, which include broadcast network ABC and cable channels like FX, Freeform, and National Geographic. Disney CEO Bob Iger has since walked back those comments, but it's still possible a spin-off or asset sale could be revisited, according to analysts.
And with Paramount's (PARA) deal with Skydance Media set to close in the second half of 2025, it remains unclear what will happen to Paramount's cable and TV properties after the merger.
