business
Comcast to Split into Two Companies, Spinning Off NBCUniversal and Sky
Comcast announced it will split into two publicly traded companies through a tax-free spinoff of its media assets. The move leaves the remaining entity focused on broadband and wireless services. Shares rose sharply in premarket trading following the disclosure.
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Comcast announced Monday it will split into two separate publicly traded companies by spinning off NBCUniversal and Sky in a tax-free transaction. The separation will leave the Philadelphia-based parent focused on residential and business internet services while the new entity holds the media portfolio.
NBCUniversal encompasses Universal film and television studios, a theme parks division, the NBC and Telemundo broadcast networks, Peacock, and Bravo.
Sky, the European media business, will join that portfolio after the separation. Comcast shareholders will own shares in both companies once the transaction closes. Mike Cavanagh, currently co-CEO of Comcast, will become CEO of NBCUniversal.
Former Chief Financial Officer Michael Angelakis will serve as strategic adviser during the transition and then become CEO of the remaining Comcast broadband company. Chairman and co-CEO Brian Roberts will remain actively involved in leadership of both entities. The separation requires final board approval and regulatory clearances.
It is expected to close in about a year. Comcast plans to retain an ownership stake of up to 19.9 percent in NBCUniversal for up to one year after completion. Shares of Comcast rose $4.85, or 21 percent, to $28.02 in premarket trading after the announcement.
The remaining assets under the Comcast name will include Xfinity, Xfinity Wireless and Comcast Business. , SYFY and Golf Channel, as well as CNBC and MSNBC into a new company. Movie ticketing platform Fandango and the Rotten Tomatoes movie rating site were also included.
