Comcast to Split Media and Connectivity Businesses Into Two Public Companies

Overview

• Comcast announced a tax-free spin-off that will separate NBCUniversal and Sky from its connectivity operations so existing shareholders will receive shares in both companies.
• Under the plan NBCUniversal will hold TV networks, film and animation studios, Peacock and theme parks plus the European Sky business while the retained Comcast will focus on Xfinity broadband and wireless services.
• The board named Mike Cavanagh to lead NBCUniversal and Michael Angelakis to run the Comcast connectivity company, with Brian L. Roberts remaining involved in strategic decisions for both.
• The company said the separation is expected to take about one year pending regulatory and board approvals, it will keep up to a 19.9% stake in NBCUniversal for up to 12 months to monetize it, and Goldman Sachs and PJT Partners are advising the deal.
• Shares reacted positively on the announcement with about a 10.2% rise on Nasdaq, and the split could reshape investment and content strategies across streaming, studios and broadband for Comcast’s operations that reach more than 65 million U.S. homes and businesses.