Comcast to split cable and media arms, spinning off NBCUniversal and Sky into a separate public company
The US conglomerate plans a tax-free spinoff of its media and entertainment assets, creating an independent NBCUniversal and Sky entity while retaining the broadband and wireless business under the Comcast name.
Comcast said on Monday it will separate into two publicly traded companies, unwinding a years-long combination of one of the world's largest cable and internet providers with an iconic TV and film group. The tax-free spinoff of NBCUniversal and Sky is expected to close in about a year, with shareholders receiving stock in both entities.
The new structure
One company will keep the Comcast name and house the broadband, wireless and business services arm, serving 65 million US homes. The other, called NBCUniversal, will bundle the Universal theme parks, film and TV studios, NBC, Peacock, Sky's European operations and networks like Bravo and Telemundo. Comcast plans to retain a stake of up to 19.9% in NBCUniversal for as long as a year after the deal closes, monetising it over time.
Leadership changes
Current co-CEO Mike Cavanagh will become chief executive of NBCUniversal, while former Comcast CFO Michael Angelakis returns to lead the remaining Comcast business. Chairman and co-CEO Brian Roberts will stay actively involved in both companies.
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.
Market reaction
Comcast shares jumped in premarket trading, though reports varied on the scale. Reuters cited a rise of more than 9%, while Handelsblatt and The Wall Street Journal put the gain at about 20%. If the latter holds through the session, it would be the stock's largest one-day percentage increase since 2008.
Industry pressures
The split comes as legacy media companies grapple with streaming competition and consolidation. Handelsblatt noted the $110 billion purchase of Warner Bros Discovery by Paramount Skydance as a recent example of the intensifying battle. Comcast itself has been losing broadband customers to mobile carriers like T-Mobile and Verizon, as well as fibre-optic rivals.
The deal we are announcing will enable a more entrepreneurial management approach and open up many new opportunities for each business.
Sky News uncertainty
The separation revives questions about the future of Sky News, which Comcast agreed to fund for a decade when it acquired Sky for £31 billion in 2018. That commitment, which includes annual inflation-linked increases, expires in 2028. Sky News is thought to lose as much as £80 million a year on a budget of about £100 million. David Rhodes, executive chair of Sky News, has previously said the parent company has been supportive of its independence, but the spinoff is likely to renew speculation about long-term plans. Comcast has already opted not to renew a brand licensing deal for Sky News Australia, which will rebrand as News24, and exited the Sky News Arabia joint venture.
- Comcast acquires Sky for £31 billion, outbidding Fox.
- Comcast spins off NBCUniversal's cable networks into Versant Media.
- Comcast announces plan to split into two companies, separating cable from NBCUniversal and Sky.
- Tax-free spinoff of NBCUniversal and Sky expected to be completed.
