Comcast announced Monday it will split into two separate publicly traded companies, spinning off NBCUniversal and Sky into a standalone entertainment and media business while keeping its broadband and wireless operations under the Comcast name.
The news sent Comcast shares up $4.85, or 21%, to $28.02 in premarket trading. The transaction is expected to be completed in about 12 months, according to CBS News.
The new NBCUniversal company will include the NBC television network, the Sky broadcasting operation, Universal theme parks and the Universal film and television studio. The remaining Comcast entity will hold Xfinity, Xfinity Wireless and Comcast Business. Comcast will retain a 19.9% ownership stake in the new NBCUniversal company.
The company said the tax-free spinoff will allow each business to pursue its own strategy, invest for growth and create shareholder value.
On leadership, Comcast co-CEO Mike Cavanagh will become the CEO of the new NBCUniversal. Michael Angelakis, Comcast's former chief financial officer, will become CEO of Comcast once the separation is complete. In the meantime, he will serve as a strategic adviser. Comcast chairman and co-CEO Brian Roberts will remain actively involved in the leadership of both companies, working in partnership with each CEO.
Wall Street analyst Adam Crisafulli, head of Vital Knowledge, offered a mixed assessment of the deal. "Comcast shares have traded poorly due in large part to concerns about the secular outlook for the broadband and cable businesses," he wrote in a research note Monday. He said the new NBCUniversal spinoff will include "an attractive mix of assets, including the theme parks and Universal film/TV studio ... and should presumably have more flexibility to participate in the industry's aggressive wave of M&A." But he also cautioned that "worries about the broadband business outlook won't go away, and if anything, this deal will leave that unit more exposed."
The move follows an earlier restructuring announcement. In November 2024, Comcast said it would spin off cable networks including USA, Oxygen, E!, SYFY, Golf Channel, CNBC and MSNBC into a separate company, along with movie ticketing platform Fandango and the Rotten Tomatoes movie rating site.
Like other cable companies, Comcast has been shifting away from traditional cable in recent years, moving toward streaming, its movie studio, theme parks and home wireless and internet services as revenue sources.
