Comcast to separate NBCUniversal and Sky into independent public company
After the spin-off, Comcast will focus on broadband and wireless, while the new NBCUniversal will house its media and entertainment assets. Shareholders will own shares in both companies.
Comcast has announced plans to separate its media and entertainment businesses, including NBCUniversal and Sky, into a new independent publicly traded company through a tax-free spin-off. Following the proposed transaction, the company shareholders will own shares in both Comcast and the new NBCUniversal company. The separation is expected to be completed in about one year, subject to regulatory approvals, board approval and other customary conditions. After the separation, Comcast will focus on its broadband, wireless and business connectivity operations. The new NBCUniversal company will include Universal's theme parks, film and television studios, the NBC and Telemundo television networks, the Peacock streaming service, Bravo and Sky's media operations in Europe. Brian L. Roberts will remain involved in the leadership of both companies. Mike Cavanagh, currently Co-Chief Executive Officer of Comcast, will become Chief Executive Officer of NBCUniversal after the transaction. Former Comcast Chief Financial Officer Michael Angelakis will return as Chief Executive Officer of Comcast and will serve as a strategic adviser until the separation is completed. Commenting on the development,Brian L. Roberts, Chairman and Co-Chief Executive Officer, Comcast Corporation, said, "This is a very exciting day for our company. The transaction we are announcing will unlock a more entrepreneurial management approach and open up a multitude of new opportunities for each business. I very much look forward to helping guide our collective growth for this next chapter. Mike Cavanaghwill lead the new NBCUniversal media and entertainment company as CEO. Mike is one of the finest executives I’ve ever worked with and a trusted partner. His vision is for a unique, independent, focused company that will be home to some of the industry’s most valuable brands and assets across theme parks, film, television, streaming, sports and news. This new company will be well-positioned to pursue the significant opportunities that lie ahead, to partner across the media and entertainment ecosystem, and will be poised to grow. ”He added, “I am also incredibly pleased to welcome back Michael Angelakis as Comcast CEO. As our widely admired former CFO, Michael’s deep knowledge of the business and passion for technology - combined with the leadership of Steve Croney, Jason Armstrong and the entire Comcast management team - will serve us well as we continue to take bold actions in today's competitive environment. Our recent momentum is the launchpad to propel our advanced network, substantial customer base, and outstanding products to even greater success. Michael’s drive, proven track record and the tremendous level of respect he commands within our organization and beyond, make me exceptionally excited to work closely with him again. "Mike Cavanagh, added, "Both companies begin this next chapter from positions of strength. 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. Each organisation will continue to be led by a management team with deep industry experience that will benefit from focused strategic priorities and the ability to pursue opportunities most relevant to their businesses. I’m personally thrilled to continue leading NBCUniversal into the future. With our iconic brands and theme parks, leading franchises and incredible creative talent, we are well-positioned for long-term value creation. "Michael Angelakis, Chief Executive Officer, Comcast, added, "I have had the privilege of working alongside Comcast's talented leadership team for many years, and I am excited to return to partner with Brian, Steve, Jason and the entire organization. Comcast's exceptional assets, entrepreneurial roots, deep customer relationships and strong track record of innovation and technological leadership provide a powerful foundation for the future. Together, we will build on those strengths, execute aggressively, invest for growth, and pursue new opportunities to create value for our customers, colleagues and shareholders. "The new NBCUniversal company will have the same dual-class share structure as Comcast. The company also plans to retain a stake of up to 19. 9% in NBCUniversal for up to one year after the spin-off, with plans to monetise the holding over time in a tax-efficient manner. Comcast intends to maintain investment-grade balance sheets for both companies to support their future growth strategies.