New York [US], June 29, (ANI): Comcast Corporation announced its intention to split into two entities in a move that will see its media and connectivity businesses getting listed separately in a fast-changing media landscape.
The cable giant plans to undertake a tax-free spin-off of NBCUniversal and Sky into a separate company that will see the shareholders of Comcast getting shares in both Comcast and NBCUniversal.
The move will help create two focused industry leaders, each with significant scale, strong financial profiles and distinct strategic opportunities, Comcast said in a release.
Shares of Comcast jumped around 20 per cent in pre-trading hours.
The company announced that Mike Cavanagh will be the Chief Executive Officer of NBCUniversal and that Comcast’s former Chief Financial Officer Michael Angelakis will become the CEO of Comcast.
“This is a very exciting day for our company. The transaction we are announcing will unlock a more entrepreneurial management approach and open up a multitude of new opportunities for each business," Brian L. Roberts, Chairman and Co-Chief Executive Officer of Comcast Corporation, said.
The deal is intended to be completed in a year, subject to necessary approvals from the board of directors, shareholders and regulators. NBCUniversal will have the same dual-class structure as Comcast, and the company will retain 19.9 per cent ownership in NBCUniversal for up to a year after the completion of the deal.
The restructuring comes at a moment of great churn when a consolidation wave is sweeping across the American media landscape. Recently, the Justice Department gave its approval to the acquisition of Warner Bros Discovery by Paramount-Skydance for USD 111 billion. The deal created one of America’s largest media conglomerates owned by David Ellison, son of Oracle founder Larry Ellison.
The shake-up in the American media landscape has been spurred by the rapid progress made by streaming services like Netflix, which has dismantled the traditional distribution businesses. On June 15, Fox Corporation announced that it is acquiring American streaming giant Roku for USD 22 billion. The deal will help cement Fox’s presence on home screens that are controlled by Roku. (ANI)
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