Comcast shares rise on plan to separate media and broadband businesses
Comcast plans to split into two public companies, with NBCUniversal and Sky on one side and broadband and wireless services on the other.
By Hana Yoshida · Markets Reporter
3 min read
Comcast plans to divide itself into two publicly traded companies, separating its media assets from its broadband and wireless operations. The move matters because it would redraw one of the biggest U.S. cable and entertainment companies as traditional TV continues to lose ground to streaming and connectivity services.
Comcast shares rose 24% in premarket trading after the plan was announced Monday, according to the Associated Press. Comcast said its board and management believe the two businesses will be better able to set their own strategies, invest for growth and create long-term value as independent companies.
Media assets would sit with NBCUniversal
Under the plan described by Comcast, one company would focus on media and entertainment and include NBCUniversal and Sky. Comcast said NBCUniversal includes its theme parks business, Universal film and television studios, the NBC and Telemundo broadcast networks, Peacock and Bravo, with European media company Sky added to that portfolio.
The other public company would keep the Comcast name and focus on internet service for residential and business customers, according to the company. Comcast, which is based in Philadelphia, said that company would continue to provide connectivity services, including broadband and wireless.
The Associated Press reported that the split follows Comcast’s November 2024 plan to spin off several cable networks into a new company. Those assets included USA, Oxygen, E!, SYFY, Golf Channel, CNBC and MSNBC, along with Fandango and Rotten Tomatoes, according to the AP.
Comcast’s shift comes as cable companies have been putting more emphasis on streaming, studios, theme parks, wireless and home internet, the AP reported. The company’s media holdings already include Peacock, movie and TV production operations and theme parks, while its connectivity business serves households and businesses.
Leadership changes are planned
Comcast said co-CEO Mike Cavanagh will lead NBCUniversal after the separation. Michael Angelakis, Comcast’s former chief financial officer, will become chief executive of Comcast once the transaction closes and will serve as a strategic adviser before then, according to the company.
Brian Roberts, Comcast’s chairman and co-CEO, will remain involved in leadership at both companies, Comcast said. The company said he will work with the chief executives of Comcast and NBCUniversal after the split.
Cavanagh said in a company statement that Comcast would keep building its connectivity business, while NBCUniversal and Sky would have the brands, scale, content and financial resources to compete as a global media and entertainment company.
Comcast said shareholders would receive stock in both companies once the separation is completed. The company expects the process to take about a year.
The transaction still requires final approval from Comcast’s board and regulatory approvals, according to the company. Comcast also said it expects to retain as much as a 19.9% stake in NBCUniversal for up to one year after the spinoff is finished.
This story draws on original reporting from Fortune.