Key facts
- Comcast plans to separate NBCUniversal and Sky into a distinct media company.
- The remaining Comcast entity will focus on broadband and wireless services.
- The separation is expected to be completed within approximately one year.
- Mike Cavanagh will lead the new NBCUniversal entity as CEO.
- Michael Angelakis will serve as CEO of the remaining Comcast business.
- Comcast shares rose 24% in premarket trading after the announcement.
Comcast announced plans to separate its media and entertainment division, NBCUniversal, and European business Sky, into a new, publicly traded company. The remaining Comcast entity will focus on its broadband and wireless services. This strategic move, expected to be completed in about a year, aims to allow each company to pursue its own growth priorities and create shareholder value independently.
The new media company will encompass cable networks such as USA, Oxygen, E!, SYFY, Golf Channel, CNBC, and MSNBC, along with Fandango and Rotten Tomatoes. NBCUniversal's existing assets, including its theme parks, film and television studios, NBC, Telemundo, Peacock, and Bravo, will be integrated with Sky. Comcast has been increasingly shifting its focus towards streaming and other revenue streams beyond traditional cable.
Mike Cavanagh, currently co-CEO of Comcast, is set to lead the new NBCUniversal entity as its CEO. Michael Angelakis, formerly Comcast's Chief Financial Officer, will become the CEO of the broadband-focused company, serving as a strategic advisor in the interim. Comcast Chairman and co-CEO Brian Roberts will continue to play an active role in the leadership of both companies.
Comcast intends to retain an ownership stake of up to 19.9% in NBCUniversal for a period of up to one year following the separation. The transaction is subject to final board approval and regulatory clearances. Following the announcement, Comcast shares surged 24% in premarket trading.