Comcast Corp. announced plans to split its media and technology businesses, spinning off NBCUniversal and Sky into a separate publicly traded company. Comcast shareholders will have stakes in both companies, the company said in a statement on Monday. The separation is expected to take place in a year, subject to board and regulatory approvals.
Structure of the Spinoff
NBCUniversal will retain the same dual-class share structure as Comcast. The new media unit will hold the theme parks division, Universal film and television studios, NBC and Telemundo networks, Peacock, and Bravo, as well as the European media business, Sky. The remaining Comcast will focus on broadband, wireless, and cable TV operations.
Leadership Changes
Mike Cavanagh will serve as CEO of NBCUniversal, while Comcast’s former chief financial officer Michael Angelakis will become CEO of Comcast. Comcast will retain a stake of up to 19.9% in NBCUniversal for as long as a year after the spinoff is complete. Chairman Brian Roberts will “continue to be actively involved in the leadership” of both companies, according to the statement.
Market Reaction
Comcast shares rose more than 20% in premarket trading before markets opened in New York. The stock closed at US$23.17 on Friday and has lost 22% so far this year. The spinoff is designed to help the two companies focus on separate strategic priorities as the telecommunications business diverges from entertainment.
