Comcast has announced plans to split its business into two separate publicly traded companies.
This is one of the biggest changes in its history as it separates its broadband and technology operations from its media and entertainment assets.
The tax-free spin-off, which is expected to be completed within the next year, will see NBCUniversal and Sky become an independent company, while Comcast continues as a standalone technology and connectivity business.
Existing Comcast shareholders will own shares in both companies after the separation.
The media company will include Universal’s film and television studios, NBC, Telemundo, streaming platform Peacock, Sky, Bravo and Universal’s theme parks.
Comcast, meanwhile, will focus on broadband, wireless services, business connectivity and its technology platforms.
The company said the decision reflects changes in the communications and entertainment industries, arguing that each business will be better placed to pursue its own growth plans and respond to changing market conditions.
Brian Roberts, chairman and co-chief executive officer of Comcast, will remain involved in both businesses after the separation.
Mike Cavanagh will become CEO of the new NBCUniversal, while former Comcast Chief Financial Officer Michael Angelakis will return as Comcast’s CEO after the transaction is completed. He will first rejoin the company as a strategic adviser.
Announcing the decision, Roberts 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.”
Speaking about the leadership changes, he added: “Mike Cavanagh will 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.”
Roberts also welcomed Angelakis back to the company, saying, “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.”
Cavanagh said both companies would begin operating independently from a position of strength.
“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,” he said.
He added, “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.”
Angelakis said he was looking forward to returning to the company.
“I have had the privilege of working alongside Comcast’s talented leadership team for many years, and am excited to return to partner with Brian, Steve, Jason and the entire organisation. 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.”
The separation reverses years of consolidation that brought content production and distribution under one company. Comcast first acquired a controlling stake in NBCUniversal from General Electric in 2011 before taking full ownership two years later.
The move also follows growing pressure on traditional media companies as cable television subscriptions continue to decline and streaming services reshape the industry. At the same time, Comcast’s broadband business has faced increasing competition from wireless internet providers and expanding fibre networks.
Industry analysts believe the split could also make NBCUniversal more attractive for future mergers or acquisitions, although no potential deal has been announced.
Comcast said the transaction remains subject to regulatory approvals, board approval, financing arrangements and other customary conditions. The company also plans to retain up to a 19.9% stake in NBCUniversal for up to one year after the spin-off before gradually selling that holding in a tax-efficient manner.
