Comcast to split into two companies
Comcast will separate into two publicly traded companies through a tax-free spinoff of NBCUniversal and Sky, splitting its broadband and wireless business from its media and entertainment operations.
The transaction, which is expected to be completed in about a year, will create one company focused on Comcast’s cable, wireless and business services, while the second will include Universal theme parks, film and television studios, NBC, Peacock and European media business Sky. Comcast shareholders will own stock in both companies after the separation closes, while Comcast plans to retain a stake of up to 19.9% in NBCUniversal for up to one year following the spinoff.
The move separates Comcast’s cash-generating broadband business from media assets that have faced increasing pressure from streaming competition and industry consolidation. It also unwinds 15 years of integration between content and distribution, as legacy media companies continue to adapt to changing consumer behaviour and the rapid growth of streaming services.
Following the announcement, Comcast shares rose in premarket trading.