Comcast Corporation announced today that it plans to split into two separate publicly traded companies through a tax-free spin-off of NBCUniversal and Sky. After the transaction, shareholders will hold shares in both companies, resulting in two focused industry leaders, each with substantial scale, solid financial positions, and unique strategic prospects.
Comcast co-CEO Mike Cavanagh will become CEO of NBCUniversal, while Comcast’s former CFO Michael Angelakis will become CEO of Comcast.
Comcast shares jumped as much as 26% in premarket trading, following the announcement.
Brian L. Roberts, Chairman and Co-Chief Executive Officer of Comcast Corporation, said: “This is a very exciting day for our company. The transaction we are announcing will unlock a more entrepreneurial management approach and open up a multitude of new opportunities for each business. I very much look forward to helping guide our collective growth for this next chapter.”
“This new company will be well-positioned to pursue the significant opportunities that lie ahead, to partner across the media and entertainment ecosystem, and will be poised to grow.”
Mike Cavanagh, Co-Chief Executive Officer of Comcast Corporation, said: “Both companies begin this next chapter from positions of strength. Comcast will continue to build on its leadership in connectivity, while NBCUniversal, together with Sky, will have the scale, brands, content and financial resources to compete as a premier global media and entertainment company. Each organization will continue to be led by a management team with deep industry experience that will benefit from focused strategic priorities and the ability to pursue opportunities most relevant to their businesses. I’m personally thrilled to continue leading NBCUniversal into the future. With our iconic brands and theme parks, leading franchises and incredible creative talent, we are well-positioned for long-term value creation.”
Michael Angelakis, added: “I have had the privilege of working alongside Comcast’s talented leadership team for many years, and I am excited to return to partner with Brian, Steve, Jason and the entire organization. Comcast’s exceptional assets, entrepreneurial roots, deep customer relationships and strong track record of innovation and technological leadership provide a powerful foundation for the future. Together, we will build on those strengths, execute aggressively, invest for growth, and pursue new opportunities to create value for our customers, colleagues and shareholders.”
Comcast stated it expects to hold a stake of up to 19.9% in NBCUniversal for up to one year after completing the transaction, which it plans to monetize in a tax-efficient manner over time. The deal will need approval from the board and regulatory bodies.
The deal comes as Comcast’s share price has dropped 30% over the past year amid major challenges facing the media industry.
By CEO NA Editorial Staff
