Comcast plans split to separate NBCUniversal and Sky assets
Comcast says the planned breakup would create two public companies, with its media and connectivity businesses under separate leadership.
By Hana Yoshida · Markets Reporter
2 min read
Comcast plans to break itself into two publicly traded companies, separating its connectivity business from a media group built around NBCUniversal and Sky. The move would put broadband and wireless operations on a different path from television, film, streaming and theme park assets as the entertainment business faces pressure from streaming rivals and dealmaking across the industry, The Verge reported.
Comcast said the separation is expected to take about a year. When the transaction is completed, Comcast shareholders would hold shares in both companies, according to the company.
The company that keeps the Comcast name is expected to include its broadband, wireless and entertainment platforms. Comcast did not specify all of the services or brands that would remain in that business in the announcement cited by The Verge.
The media company would use the NBCUniversal name and include Sky, the British broadcaster Comcast bought in 2018, according to Comcast. It would also house the company’s theme parks division, Universal’s film and television studios, NBC, Peacock, Bravo and Telemundo.
Leadership changes
Comcast said Brian L. Roberts, its current chief executive, will remain actively involved in the leadership of both companies after the split. Mike Cavanagh, now a Comcast co-CEO, has been chosen to run NBCUniversal.
Michael Angelakis, Comcast’s former chief financial officer, is set to become CEO of Comcast after the separation, the company said. The planned structure would give each business its own leadership while leaving Roberts involved on both sides.
Cavanagh said in Comcast’s announcement that both companies would start the separation “from positions of strength.” He said Comcast would focus on connectivity, while NBCUniversal and Sky would have the brands, content, scale and financial resources to compete as a global media and entertainment company.
The planned split would mark a major reshaping of Comcast’s corporate structure. According to The Verge, the company’s broadband and wireless business remains profitable, while its media and entertainment operations are contending with streaming competition and consolidation among rivals.
Comcast framed the transaction as a way to create two focused public companies. The plan still has to be carried out over the coming year, and the company said shareholders would own stock in both businesses once the separation is finished.
This story draws on original reporting from The Verge.