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Comcast, just months after shedding most of its cable TV business into Versant Media, is now again cleaving itself into two separate companies: one housing its namesake cable and tech operations, and the other comprising
the NBCUniversal and Sky media biz.
Under the proposed separation, announced Monday, Comcast intends to make a tax-free spin-off of NBCUniversal and Sky. After the transaction is completed, Comcast shareholders will own shares in both Comcast and NBCUniversal.
The split will create “two focused industry leaders, each with significant scale, strong financial profiles and distinct strategic opportunities,” the media conglomerate said. Comcast is targeting mid-2027 to consummate the separate but its boilerplate disclaimer noted that there “can be no assurance that the proposed transaction will be completed or, if completed, as to its terms or timing.”
Comcast bought a controlling 51% stake in NBCU in a 2009 deal (approved in 2011), before acquiring the remaining equity in the media company from General Electric in March 2013 to take full control. The original idea was to wed Comcast’s giant cable footprint with NBCU to create synergies between distribution and content.
Now, according to Comcast, the landscape has changed.
“As technological innovation, consumer behavior and competitive dynamics continue to reshape both media and communications, Comcast’s board and management team believe each company will be better positioned to pursue its own strategic priorities, invest for growth and create long-term shareholder value as independent entities,” Comcast said.
Brian Roberts, Comcast chairman and co-CEO, will continue to be “actively involved in the leadership of Comcast and NBCUniversal,” working with the CEOs of both companies.
Mike Cavanagh, currently co-CEO of the parent company, will become the CEO of NBCUniversal. The Comcast cable company will be led by Michael Angelakis, Comcast’s former CFO who has served as chairman and CEO of investment fund Atairos Group since 2015. Angelakis will become CEO of Comcast following completion of the separation and in the interim will join as a strategic adviser.
More to come.
