Comcast Plans NBCUniversal and Sky Spinoff in Major Media Reshuffle
Cue Writer
Comcast Corp. said Monday it plans to separate NBCUniversal and Sky into an independent, publicly traded company, a proposed tax-free spinoff that would reshape one of the largest media and communications portfolios in the United States.
The company said shareholders would own shares in both Comcast and the new NBCUniversal after the transaction, which is expected to take about one year if it receives final board approval, tax opinions, regulatory approvals and financing arrangements.
Under the plan, Comcast would sharpen its focus on broadband, wireless, business services and entertainment platforms. The company said its network reaches more than 65 million homes and businesses, while its wireless and business services operations remain central to its growth strategy.
NBCUniversal would become a separate media and entertainment company built around Universal film and television studios, theme parks, NBC, Telemundo, Peacock, Bravo and Sky, Comcast’s European media business. The move comes as traditional television, streaming, advertising and telecom companies continue to adjust to changing consumer habits and higher competition for content and subscribers.
Brian L. Roberts, Comcast’s chairman and co-chief executive officer, would remain actively involved with both companies. Comcast said Mike Cavanagh would become chief executive of NBCUniversal, while former Comcast Chief Financial Officer Michael Angelakis would become chief executive of Comcast after the separation and serve as a strategic adviser in the interim.
Comcast also said it expects to keep up to a 19.9% stake in NBCUniversal for as long as one year after the spinoff, with plans to monetize that position over time in a tax-efficient way.
For investors and consumers in the U.S. Virgin Islands and across the broader U.S. market, the planned split is another sign of how large media and telecom companies are separating faster-growing connectivity businesses from content and streaming operations. The outcome could influence capital spending, media competition and Wall Street’s view of legacy entertainment assets.
Source: Comcast Corporation. Reuters also reported the announcement Monday.