Comcast has announced plans to separate itself into two publicly traded companies, spinning off its NBCUniversal and Sky broadcasting arms. The change is intended to protect the media conglomerate’s profitable broadband and wireless brands, which will retain the “Comcast” company name, as its media and entertainment businesses – now collectively named “NBCUniversal” – face increasing pressure from industry consolidation and streaming rivals.
The separation is expected to take about a year, with Comcast shareholders owning shares in both Comcast and NBCUniversal upon completion. While current Comcast CEO Brian L. Roberts will be “actively involved in the leadership” of both companies, co-CEO Mike Cavanagh has been selected to lead NBCUniversal, and former Comcast Chief Financial Officer Michael Angelakis will become Comcast CEO following the split.
If the deal moves forward, Sky Media – the British broadcaster that Comcast acquired in 2018 – will be placed under the new NBCUniversal unit along with the company’s theme parks division, Universal Film and Television Studios, NBC, Peacock, Bravo and Telemundo networks. Meanwhile, the new Comcast is expected to continue serving customers through its unspecified “broadband, wireless and entertainment platforms.”
Cavanagh said, “Both companies begin this next chapter from a strong position. Comcast will continue to advance its leadership in connectivity, while NBCUniversal, together with Sky, will have the scale, brand, content and financial resources to compete as a leading global media and entertainment company.” “I am personally thrilled to continue leading NBCUniversal into the future.”
Disclosure: Comcast is an investor in Vox Media, parent company of The Verge.
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