Comcast announced plans Monday to split into two publicly traded companies by spinning off NBCUniversal and Sky, separating its media and entertainment assets from its broadband and wireless business. The company’s stock surged more than 22% in pre-market trading following the announcement.
The newly spun-off NBCUniversal will include the company’s theme parks division, Universal film and television studios, NBC and Telemundo networks, Peacock streaming service, Bravo, and Sky, the British broadcaster Comcast acquired in 2018. Comcast will retain its broadband, wireless, and entertainment platforms as a separate entity.
For Los Angeles, where NBCUniversal is a major employer and economic engine, the separation represents a significant corporate restructuring. Universal Studios Hollywood, the Universal film lot, and numerous NBC-owned television stations are all part of the package being spun off. Mike Cavanagh, Comcast’s co-CEO, will run the new NBCUniversal, while Michael Angelakis, a former chief financial officer, will return to lead Comcast.
“Upon completion of the transaction, Comcast shareholders will own shares in both Comcast and NBCUniversal, creating two focused industry leaders, each with significant scale, strong financial profiles and distinct strategic opportunities,” the company said in a statement.
Comcast Chairman and co-CEO Brian Roberts will “continue to be actively involved in the leadership” of both companies, according to the statement. The separation is expected to be completed in approximately one year, with Comcast retaining a stake of up to 19.9% in NBCUniversal for up to a year after the spinoff.
“Both companies begin this next chapter from positions of strength,” Cavanagh said. “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.”
The move follows the earlier spin-off of cable networks previously owned by Comcast, including MSNBC (now MS Now) and CNBC, into a separate company called Versant. The NBCUniversal spin-off is the latest in a series of major shake-ups in the media industry, following Paramount Skydance’s agreement to buy Warner Bros. Discovery for $110 billion, a deal that the Justice Department approved in June but is now facing a legal challenge from twelve states.
The restructuring comes as traditional media companies navigate the transition to streaming, compete with technology giants like Netflix and Amazon, and deal with shifting consumer viewing habits. The separation allows each entity to pursue distinct strategies and capital allocation priorities.
