PHILADELPHIA—Comcast said on Monday it plans to separate its media and entertainment operations, including NBCUniversal and European broadcaster Sky, into a standalone publicly traded company, marking one of the biggest restructurings in the U.S. media industry as the company sharpens its focus on broadband, wireless and business services.
The tax-free spin-off is expected to be completed in approximately one year, subject to final approval by Comcast's board, regulatory clearances and other customary conditions, the company said. Existing Comcast shareholders will receive shares in both the remaining Comcast and the newly independent NBCUniversal.
Following the separation, Comcast will concentrate on its broadband, mobile and enterprise connectivity businesses, while NBCUniversal will comprise Universal's film and television studios, theme parks, the NBC and Telemundo broadcast networks, Peacock, Bravo and Sky. Comcast said it expects to retain a stake of up to 19.9% in NBCUniversal for as long as one year after the transaction before reducing that holding over time in a tax-efficient manner.
Comcast Chairman and Co-Chief Executive Officer Brian L. Roberts said the transaction would "unlock a more entrepreneurial management approach and open up a multitude of new opportunities for each business," according to the company's announcement.
Under the planned leadership structure, current Comcast co-Chief Executive Officer Mike Cavanagh will become chief executive of the standalone NBCUniversal. Former Comcast Chief Financial Officer Michael Angelakis will become chief executive of Comcast after the separation, while Roberts will remain actively involved with both companies.
The move unwinds much of Comcast's vertically integrated media and distribution strategy established through its acquisition of NBCUniversal, reflecting years of pressure on traditional television businesses from cord-cutting and competition in streaming. Comcast said creating two independent companies would allow each to pursue distinct strategic priorities and invest more effectively in growth.
Investors welcomed the announcement, with Comcast shares rising sharply in premarket trading after the company disclosed the plan.
The separation follows Comcast's earlier restructuring of several cable network assets and represents one of the largest corporate reorganizations in the global media sector in recent years. The company said it expects the transaction to close within about a year, subject to the required approvals and financing arrangements.
