Comcast said Monday it will split into two publicly traded companies, spinning off NBCUniversal and Sky and leaving its broadband and wireless business in a separate company. The separation is expected to be completed in about a year.
The announcement lands with unusual force because Comcast said shareholders will end up owning stock in both companies, and the market responded quickly, with the shares rising more than 25% in pre-market trading after the news. For investors, the move turns one sprawling company into two focused businesses: one built around broadband, wireless and other entertainment platforms, and the other built around NBCUniversal’s media assets.
That second company will hold theme parks, Universal film and television studios, NBC and Telemundo, Peacock, Bravo and Sky. Comcast said Mike Cavanagh will run the new NBCUniversal, while Michael Angelakis will lead Comcast. Brian Roberts will remain actively involved in the leadership of both companies, keeping a direct hand on the split as it moves from announcement to execution.
The structure is cleaner on paper than it is in practice. Comcast expects to retain a stake of up to 19.9% in NBCUniversal for up to a year after the separation is completed, which means the two companies will be independent while still linked by ownership for a period of time. Comcast also said its board and management believe each business will be better positioned to pursue its own priorities and create long-term shareholder value as separate public companies.
The move follows the earlier spin-off of MSNBC, now MS Now, and CNBC into Versant, extending Comcast’s push to pull its news and entertainment holdings into separate corporate homes. It also leaves one open question at the center of the deal: how much day-to-day influence Roberts and Comcast will still have once the split is finished and the remaining stake is gone. For now, the answer is that the company is splitting in two, but not fully letting go at once.
