Comcast to split cable business from media through NBCUniversal, Sky spinoff
Comcast will split into two publicly traded companies through a subsidiary of NBCUniversal and Sky, separating its cash-generating broadband arm from its media and entertainment business, which is under pressure from broadcast rivals and industry consolidation.
The company’s shares rose more than 20% in premarket trading Monday.
The latest shakeup in the US media industry comes after years of cable disruptions as legacy players seek scale to better compete with Netflix, while Paramount Skydance’s $110 billion deal for Warner Bros Discovery will also increase competition.
Comcast, which relies on cable for most of its cash flow, is also losing broadband customers to fixed wireless services from T-Mobile and Verizon and to fiber rivals that are building networks.
“The transaction we are announcing will unlock a more entrepreneurial management approach and unlock numerous new opportunities for every business,” said Brian Roberts, president and co-CEO of Comcast.
The split, expected to be completed in about a year, will create one company under Comcast’s cable, wireless and commercial services arm and another built around Universal theme parks, film and TV studios, NBC, Peacock and European media company Sky.
Comcast co-CEO Mike Cavanagh will lead the new NBCUniversal. Former chief financial officer Michael Angelakis will return to lead Comcast as CEO after initially joining as a strategic advisor before leaving.
Once the deal is completed, Comcast shareholders will own shares in both companies.
The company will own up to a 19.9% stake in NBCUniversal for up to a year following the spin-off, which it plans to monetize over time.
