Comcast will separate its broadband and wireless business from NBCUniversal and Sky media operations in a tax-free spinoff expected to complete within a year.
2:55 PM
Comcast announced Monday it will split into two publicly traded companies, separating its media and entertainment operations from its broadband and wireless businesses.
The company will spin off NBCUniversal and Sky into a standalone media company, while retaining its profitable broadband and wireless brands under the Comcast name. The separation is expected to take approximately one year to complete.
The tax-free spinoff will allow each business to pursue its own strategy, invest for growth and create shareholder value, according to a company statement. Comcast shareholders will own shares in both the new Comcast and NBCUniversal upon completion of the separation.
The remaining Comcast company will retain Xfinity, Xfinity Wireless and Comcast Business. The new NBCUniversal will include the NBC and Telemundo television networks, Universal film and television studios, the Peacock streaming platform, the Bravo cable network and the company's theme parks division. Sky, the British broadcaster that Comcast acquired in 2018, will also be part of the new media company.
Current Comcast CEO Brian L. Roberts will be "actively involved in the leadership" of both companies following the split. Mike Cavanagh, currently co-CEO, has been selected to lead NBCUniversal. Michael Angelakis, Comcast's former chief financial officer, will become CEO of the remaining Comcast company after the separation.
Comcast's stock price jumped in premarket trading following the announcement, rising $4.85, or 21 percent, to $28.02 per share. The move comes as Comcast, like other cable companies, has shifted away from traditional cable television in recent years amid pressure from industry consolidation and streaming rivals.
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