In April 2022, Twitter’s stock surged after it was revealed that Elon Musk had acquired a substantial stake in the company. Over the following months, Musk would buy Twitter outright for $44 billion, attempt to back out of the deal, and then ultimately proceed with the acquisition. He hired Linda Yaccarino, the former NBCUniversal advertising chief, as CEO, rebranded Twitter to “X,” and positioned it as an “everything app” and a champion of free speech.
Recently, Musk has been posting frequently about MSNBC, the left-leaning cable news channel owned by Comcast’s NBCUniversal. His comments have led many to speculate that he might be interested in buying MSNBC.
Is MSNBC For Sale?
No, MSNBC is not for sale. Comcast has clarified that it is planning a spin-off of its cable channels, including MSNBC, into a new company, but these assets are not being sold. The new entity, which is temporarily called “SpinCo,” will be a standalone company, with existing Comcast shareholders retaining stakes in it.
Why Are People Talking About a Sale Then?
The confusion stems from Comcast’s announcement of a major spinoff of its cable channels. The move is intended to create a more focused company, with a stronger balance sheet and greater flexibility for pursuing growth, including mergers and acquisitions. However, Comcast made it clear that the assets, including MSNBC, are not up for sale.
Could Comcast Sell MSNBC After the Spinoff?
It’s unlikely. While MSNBC, like other cable channels, has faced challenges due to declining viewership and the rise of streaming, selling it would complicate its distribution deals, which are essential to its profitability. Comcast hopes that SpinCo will be able to invest in MSNBC and navigate the difficulties of the cable industry’s decline.
Could Musk Buy SpinCo?
A deal for SpinCo would be complicated. The Roberts family, which controls Comcast, has significant influence over the new company, making any acquisition challenging without their approval. Moreover, the spin-off will be structured as a tax-free event, which means any major mergers or acquisitions would be difficult for at least two years due to tax regulations.
Why Is Elon Interested in MSNBC?
Musk has been vocal in his criticism of MSNBC for years, often attacking its hosts and segments. The current conversation began after a meme from Donald Trump Jr. mistakenly suggested that MSNBC was for sale, prompting Musk to weigh in. Musk’s criticism of the media and advocacy for alternative platforms like X (formerly Twitter) is part of a broader narrative where he encourages users to bypass traditional media outlets.
Musk also has personal issues with Microsoft and its founder, Bill Gates. Musk has been highly critical of OpenAI (which he helped found) and its ties to Microsoft, and he has a history of clashes with Gates, particularly over Gates’ short position in Tesla stock.
What About Musk’s Financial Position?
Despite being the world’s richest person, Musk’s wealth is largely tied up in Tesla and SpaceX stock. This makes financing a major acquisition like MSNBC difficult, as he would likely need outside investors or loans. Unlike the Twitter deal, which was partially funded by a margin loan secured against Tesla stock, a deal for MSNBC would be even more complex and expensive.
What Would Musk Do With MSNBC if He Bought It?
If Musk acquired MSNBC, it would represent a significant shift in the cable news landscape. Unlike Twitter, which is a platform for user-generated content, MSNBC is a traditional cable news channel reliant on familiar programming and established audiences. Musk’s potential changes to its programming could risk alienating its current viewership, while reshaping it with new, more right-leaning content could face resistance from its liberal audience.
Additionally, bringing Joe Rogan, a popular figure on X, to MSNBC could attract attention, but it would not necessarily guarantee success. Musk could also host Rogan’s shows directly on X, bypassing the need for a traditional network.
The prospect of a Musk-backed cable news network also raises questions about the broader media ecosystem. Competing with established giants like Fox News would be challenging, and the introduction of a Musk-controlled channel could further polarize media, especially if it aligns with right-wing values.
Conclusion
In conclusion, while Musk has shown interest in MSNBC, it remains unlikely that he will successfully acquire the network. The logistics, regulatory hurdles, and potential costs involved make such a deal far from straightforward. Even if he did acquire MSNBC, it’s unclear how he would navigate the world of cable news, an entirely different business from the social media realm where he’s more comfortable.
