Comcast announced this Monday, 29, a plan to split into two independent publicly traded companies, through a tax-exempt spin-off of NBCUniversal and Sky. Completion of the transaction is expected to take approximately one year, subject to board approval, regulatory approval and other customary conditions.
With the transaction, current shareholders will now hold shares in both companies. The “new Comcast” will focus on connectivity businesses, including broadband, mobile telephony and pay TV, while NBCUniversal will bring together Universal studios, theme parks, the NBC, Telemundo and Bravo networks, the Peacock streaming service and the European operation Sky.
The company said that Brian Roberts will continue to be involved in the leadership of both companies. Mike Cavanagh, Comcast’s current co-CEO, will take the helm at NBCUniversal, while former chief financial officer Michael Angelakis will return to lead Comcast following the completion of the separation.
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According to Roberts, the reorganization will “unlock a more entrepreneurial management approach” and open up new growth opportunities for both businesses.
Cavanagh stated that the two companies will begin this new stage “from positions of strength”, allowing Comcast to expand its leadership in connectivity and NBCUniversal to have the scale to compete as one of the main global media and entertainment companies.
Comcast intends to maintain a stake of up to 19.9% in NBCUniversal for up to a year after the spinoff, with the intention of monetizing that stake in a tax-efficient manner over time. The company also stated that it intends to structure investment grade balance sheets for both companies.
