PHILADELPHIA — Comcast Corporation said it plans to separate into two publicly traded companies, splitting its media and entertainment operations from its broadband, wireless and technology businesses in a tax-free spinoff expected to be completed in about one year.
The separation will create a standalone NBCUniversal company that will include Comcast’s media assets, including Universal theme parks, film and television studios, NBC and Telemundo networks, the Peacock streaming service and European media business Sky, while the remaining Comcast business will focus on connectivity services such as broadband, wireless and business communications.
Comcast said shareholders will receive shares in both companies once the transaction is completed, subject to final approval from the company’s board, regulatory approvals, tax-related requirements and other closing conditions. The company said it expects the two businesses to have separate financial structures and management teams.
Comcast Chairman and Co-Chief Executive Officer Brian Roberts said the separation would allow each business to pursue its own strategic priorities. “This is a very exciting day for our company,” Roberts said in the company’s announcement, adding that the transaction would create a more focused management approach for the two businesses.
Mike Cavanagh, Comcast’s co-chief executive officer, is expected to lead the new NBCUniversal media and entertainment company as chief executive officer. Former Comcast Chief Financial Officer Michael Angelakis is expected to become chief executive of Comcast following completion of the separation, according to the company.
Comcast said it intends to retain up to a 19.9% ownership stake in NBCUniversal for up to one year after the spinoff, which it plans to monetize over time in a tax-efficient manner.
The restructuring marks a significant change for Comcast, which built a large integrated business combining content production and distribution following major acquisitions including NBCUniversal and Sky. The company’s move comes as traditional media companies face pressure from changing consumer viewing habits, streaming competition and shifts in the telecommunications industry.
Investors responded positively to the announcement, with Comcast shares rising after the company disclosed the planned separation. Analysts said the split could allow the two businesses to be evaluated independently, though Comcast has said the transaction is intended to create more focused companies rather than serve as a step toward a sale.
Comcast said the proposed separation remains subject to completion of required approvals and conditions, with the company targeting completion of the spinoff in approximately one year.
