Comcast announced on Monday its decision to divide its operations into two distinct companies. This strategic move will spin off NBCUniversal and Sky into a separate media entity, while Comcast retains its broadband and wireless services under its original corporate umbrella.
In an official statement, the company highlighted that this tax-free spinoff will empower each entity to independently drive its strategy, invest in growth opportunities, and enhance shareholder value.
Following the news, Comcast’s shares surged by $4.85, marking a 21% increase to reach $28.02 during premarket trading.
This reorganization will establish NBCUniversal as a standalone media and entertainment company. It will encompass Universal theme parks and networks such as NBC and Sky. Meanwhile, the assets remaining under Comcast will include brands like Xfinity, Xfinity Wireless, and Comcast Business.
The move follows earlier announcements from November 2024 when Comcast revealed plans to separate various cable networks like USA, Oxygen, E!, SYFY, and Golf Channel, as well as CNBC and MSNBC, into a new company. Additionally, Fandango, the movie ticketing platform, and Rotten Tomatoes, the popular movie rating site, were also part of this spinoff plan.
Like other cable companies, Comcast in recent years has shifted its business emphasis away from traditional cable toward streaming and other sources of revenue, such as its movie studio, theme parks and home wireless and internet services.
Leadership of the new companies
Comcast co-CEO Mike Cavanagh will become the CEO of NBCUniversal. Comcast’s former chief financial officer, Michael Angelakis, will become the CEO of Comcast following completion of the separation. In the interim, he will serve as a strategic adviser.
Comcast chairman and co-CEO Brian Roberts will continue to be actively involved in the leadership of Comcast and NBCUniversal, working in partnership with the CEOs of both companies.
Comcast will retain a 19.9% ownership stake in NBCUniversal, the statement said. The transaction is expected to be completed in about 12 months.
Stephen Smith
contributed to this report.