Mainstream media is once again shocked by something Elon Musk said as the billionaire has now teased about the potential acquisition of MSNBC after Comcast – the parent company of the media outlet – announced that it would be spinning off the establishment liberal-leaning news channel into a separate entity.
One of Donald Trump’s sons, Donald Jr., pitched the idea to the head of SpaceX and Tesla (TSLA), whose net worth currently stands at around $334 billion, making him the richest man in the world as per data from Forbes.
How much does it cost?
— Elon Musk (@elonmusk) November 22, 2024
“Hey @elonmusk I have the funniest idea ever!!!” Donald Jr. posted on X while citing news that MSNBC might be for sale.
Musk’s response was provocative and controversial, as he replied: “How much does it cost?” He later added: “The most entertaining outcome, especially if ironic, is most likely,” accompanied by a laughing emoji.
This seemingly innocent exchange quickly prompted X users to speculate on Musk’s true intentions. Meanwhile, the conversation expanded rapidly as Joe Rogan, America’s most popular podcaster, told Musk that he would be willing to take Rachel Maddow’s job if he bought MSNBC.
He joked that he would be willing to “wear the same outfit and glasses, and I will tell the same lies.” Musk said “Deal” to Rogan’s offering and surely intrigued a portion of his millions of followers on the micro-blogging platform with these remarks.
Although this may also seem innocent on the surface, observers noted that the plot line seems awfully similar to what happened to Twitter when Musk ultimately acquired the social media network for $44 million in 2022 – it all started with jokes.
Comcast Spins Off Key Cable Networks to Focus on Streaming Business
This conversation between Musk, Donald Jr., and Rogan occurs at a point when Comcast, MSNBC’s parent, is undergoing an organizational restructuring. Last week, the firm announced a plan to spin off multiple cable TV networks including E!, CNBC, USA Network, and the Golf Channel.
“We are now exploring whether creating a new well-capitalized company, owned by our shareholders and comprised of our strong portfolio of cable networks, would position them to take advantage of opportunities in the changing media landscape and create value for our shareholders,” commented Mike Cavanagh, Comcast’s President, about the deal.
All of these businesses will be transferred to a new entity called “SpinCo” which will be led by Mark Lazarus – the current head of NBCUniversal Media Group.
Also read: Elon Musk Controversy: Twitter Acquisition, Lawsuits, and Politics
These combined assets reportedly generated around $7 billion in revenue during the 12 months ended on September 30 this year and accounted for approximately 6% of Comcast’s total revenue during that period.
It may take the firm years to complete this transition as it would require the approval of regulators given the vast influence that networks like MSNBC and CNBC have in the United States.
Fear Takes Over MSNBC Internally While Analysts Claim This is the Right Move
Thomas Whalen, an associate professor of social sciences at Boston University, characterized Musk’s potential interest as “a bombshell on the broadcasting landscape.”
He drew concerning parallels to media ownership patterns in Russia, stating: “Musk’s move seems like a hostile takeover and it bodes badly for the media moving forward. I think how Vladimir Putin and oligarchs have been buying the free media in Russia.”
Also read: Top 10 Media Companies in the World by Market Capitalization (2024)
The potential sale has reportedly caused anxiety within MSNBC’s ranks. “Everyone is in a panic because everything is up in the air,” an MSNBC source told The Post.
Analysts see the move as positive for these cable networks as they stand a better chance of surviving if they join forces and manage to find synergies among their businesses.
“There are a lot of efficiencies to be had by combining many of these companies,” commented Reif Ehrlich from Bank of America. “Can these companies survive as part of a bigger entity? Yes, of course they can.”
Musk’s Political Interest May Incentivize Him to Make This More Than a Joke
The political climate in the United States would make this acquisition highly controversial as Musk explicitly supported President-elect Donald Trump throughout his campaign and will likely be endorsing many of his conservative initiatives once he comes to the Oval Office.
Trump has previously criticized the network, describing it as “the world’s biggest political contribution to the Radical Left Democrats” and “nothing but a 24 hour hit job on Donald J. Trump.”
The New York Times has noted that while MSNBC “once devoted” itself to “news programming” it has evolved to become “occupied” by predominantly “Trump-bashing opinion hosts.”
Also read: Elon Musk’s Political Influence: Backing Trump in 2024
The decision to adopt such a hostile stance against Trump could be a response to his known intentions to deal, to some extent, with the spread of fake news and misinformation by certain media outlets. Journalists and experts from the media industry fear that Trump’s agenda could hurt America’s free press and free speech rights.
Analysts are still skeptical that Musk has any interest in acquiring SpinCo from Comcast. Paul Verna, principal analyst and vice president of content for the market research company eMarketer, suggests that the cable TV business is “a dwindling business” as consumers have shifted from traditional channels to streaming platforms primarily.
Comcast recently reported robust results from its streaming business, with revenues soaring by 82% as Peacock – the firm’s flagship streaming service – saw a 29% increase in paid subscribers in the latest quarter.
For now, Musk’s comments about a potential acquisition appear to be more provocative than practical. However, this would not be the first time that a wealthy individual from an unrelated industry acquires a powerful media company like Jeff Bezos, the founder of Amazon (AMZN) did with The Washington Post in 2013.