Comcast split: Global conglomerate to spin off media and tech wings into separate public companies
The US global media and technology conglomerate behind NBC and Sky has revealed its plans to separate its businesses into two publicly traded companies.
Comcast said Monday it plans to separate its media and technology businesses into two publicly traded companies through a tax-free spin-off of NBCUniversal and Sky, to better position its strategic priorities.
The spin-off is expected to be completed in about one year, and Comcast shareholders will own shares in both Comcast and NBCUniversal, the company said in a statement.
Comcast shares jumped as much as 23 per cent in pre-market trading.
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By continuing you agree to our Terms and Privacy Policy.Comcast co-CEO Mike Cavanagh will become CEO of NBCUniversal, while Comcast’s former Chief Financial Officer Michael Angelakis will become CEO of Comcast.
Comcast’s other co-CEO and chair, Brian L. Roberts, will continue to be actively involved in the leadership of both Comcast and NBCUniversal.
“The transaction we are announcing will unlock a more entrepreneurial management approach and open up a multitude of new opportunities for each business,” Mr Roberts said.
“Comcast will continue to build on its leadership in connectivity, while NBCUniversal, together with Sky, will have the scale, brands, content and financial resources to compete as a premier global media and entertainment company,” Cavanagh said.
Comcast said it expects to retain a stake of up to 19.9 per cent ownership position in NBCUniversal for up to one year after the transaction is completed, which it intends to tax-efficiently monetize over time.
NBC reported that the company’s theme parks division, Universal film and television studios, NBC and Telemundo networks, Peacock, Bravo and Sky - the UK broadcaster which it purchased in 2018 - would all be included in the separated NBCUniversal operation.
The separated Comcast name would then be separated and spearhead its “wireless, broadband and entertainment” platforms.
The planned move comes after Comcast announced in November 2024 that it was spinning off cable networks such as USA, Oxygen, E!, 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.
It also follows a 12-month slide in Comcast’s share price amid significant challenges facing the global media industries that are largely driven by the shift away from the TV bundle and towards streaming.
The move is unlikely to have any impact on Sky News Australia, given News Corp Australia’s purchase of the local operation back in 2016 for its pay TV operations. While it continues to licence the Sky branding from Comcast, Sky News Australia is set to rebrand as News24 late next month.
