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.

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With a goal to separate the high-growth digital business from the weight of traditional TV, one company will handle streaming and studios; the other, legacy television. 

The restructuring will see Warner Bros. Television, DC Studios, HBO, HBO Max, and the company’s extensive film and TV archives form a new entity focused on streaming and content production. 

Meanwhile, CNN, TNT Sports, Discovery Channel, and the rest of the company’s linear television brands, across the U.S. and Europe, will sit under a second company called Global Networks.

The announcement comes as WBD tries to turn around years of financial stress. Since its 2022 merger with WarnerMedia, the company has faced the dual challenge of high costs of streaming and falling cable revenues. 

CEO David Zaslav, who will lead the new Streaming and Studios company, stated in an internal memo: “While the work has been challenging at times, we’ve made strong progress in returning our film and television studios to industry leadership.”

WBD is borrowing $17.5 billion through a short-term loan, aiming to buy back a portion of its $37 billion debt before the breakup. The precise allocation of debt between the two new companies remains unclear, but WBD has indicated the majority will be assigned to Global Networks.

This financial reshuffle has implications well beyond Warner Bros. Analysts are already speculating about possible mergers or partnerships. 

With Global Networks keeping a 20% stake in the Streaming and Studios business, and no final names announced for the spin-offs, it’s not out of the question that WBD could become a player in the next big media consolidation wave.

If Zaslav’s strategy succeeds, the split could shield the fast-growing streaming business from the financial drag of traditional cable TV. But if it doesn’t, WBD could find itself with one company weighed down by debt and another struggling to find direction in the competitive streaming market.

Zaslav said, “By operating as two distinct and optimised companies in the future, we are empowering these iconic brands with the sharper focus and strategic flexibility they need to compete most effectively in today’s evolving media landscape.”

There’s still no word on whether either of the new companies will keep the “Warner Bros.” name. CFO Gunnar Wiedenfels is set to lead Global Networks after the split, while both Zaslav and Wiedenfels will remain in their current roles until the separation is finalised.

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