Comcast plans to split media and technology businesses
Comcast plans to split NBCUniversal and Sky into two separate publicly traded companies.
The U.S. company said on Monday that its board and management team think each company will be better positioned to pursue its own strategic priorities, invest in growth and create long-term shareholder value as independent entities.
Comcast shares rose 24 percent in premarket trading.
The planned move comes after Comcast announced that it would spin off cable networks such as USA, Oxygen, E!, SYFY and Golf Channel, as well as CNBC and MSNBC, into a new company in 2024.
Movie ticketing platform Fandango and movie rating site Rotten Tomatoes are also included.
Like other cable companies, Comcast has shifted its business focus in recent years from traditional cable to streaming and other revenue sources such as movie studio, theme parks and home wireless and internet services.
Media and entertainment company NBCUniversal includes a theme parks division, Universal film and television studios, NBC and Telemundo networks, Peacock and Bravo.
Its portfolio will now include European media company Sky.
Philadelphia-based Comcast will continue to provide internet services to residential and commercial customers.
Comcast co-CEO Mike Cavanagh will become CEO of NBCUniversal.
Michael Angelakis, Comcast’s former chief financial officer, will become Comcast’s CEO following the completion of the separation.
In the meantime, he will serve as a strategic advisor.
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.
Once the transaction is completed, Comcast shareholders will own shares in both Comcast and NBCUniversal.
The separation is expected to be completed in about a year.
It still needs final approval from Comcast’s board of directors and is subject to regulatory approvals.
Comcast plans to retain up to a 19.9 percent ownership stake in NBCUniversal for up to a year after the spinoff is completed.
Australia’s Associated Press is the beating heart of Australian news. AAP is Australia’s only independent national news channel and has been providing accurate, reliable and fast-paced news content to the media industry, government and corporate sector for 85 years. We inform Australia.
