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Comcast announced plans to split into two separate companies, spinning off NBCUniversal and Sky from its broadband and wireless business. This move aims to reverse a sharp decline in Comcast's share price. The separation will create two independent publicly traded companies, with Comcast shareholders owning stock in both entities.
The media and entertainment division will include Universal Studios, Peacock, and Sky, while the broadband and wireless division will serve 65 million homes and businesses across the United States. Comcast shares jumped over 25% in pre-market trading following the announcement.
Mike Cavanagh, Comcast's co-CEO, will become the CEO of NBCUniversal, while former finance chief Michael Angelakis will lead Comcast. Comcast chair and CEO Brian Roberts will remain actively involved in both companies. The split is expected to be completed within a year.
The decision comes as Comcast faces increased competition from streaming rivals and a 30% decline in its share price over the past year. The company previously spun off its cable television businesses, including CNBC and USA Network, as a separate group called Versant.
Comcast will retain a stake of up to 19.9% in NBCUniversal for up to a year following the spinoff, which it plans to monetize over time. The split is seen as a strategic move to unlock new opportunities for each business and better position them in the changing media landscape.
For more details, visit the Financial Times, Global Banking & Finance Review, and Comcast's official press release.