Comcast to spin off NBCUniversal and Sky from tech side of business

US media giant Comcast says it intends to separate its studios and broadcast business from its broadband and tech operations to create two independent publicly traded companies.

Brian Roberts

US studio NBCUniversal (NBCU), streaming service Peacock and European pay TV outfit Sky will form one side of the business as a standalone NBCU, while the company’s broadband and wireless operations in the US will form another under the Comcast branding.

The deal is in the form of a tax-free spin-off of NBCU and Sky and after its completion Comcast shareholders will own shares in both Comcast and NBCUniversal.

Brian L Roberts, currently chairman and co-CEO, will continue to be involved in the leadership of Comcast and NBCU, working in partnership with the CEOs of both companies.

Mike Cavanagh will be CEO of NBCU while Comcast’s former chief financial officer Michael Angelakis will become CEO of Comcast, following completion of the separation and in the interim will join as a strategic advisor.

NBCU includes a theme parks division, Universal film and television studios and US broadcast network NBC, as well as Telemundo, Peacock and Bravo. It will now also incorporate pay TV outfit Sky, which in turn is in discussions to acquire the broadcast and streaming assets of UK commercial broadcaster ITV.

Mike Cavanagh

Roberts said: “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. I very much look forward to helping guide our collective growth for this next chapter.

“Mike is one of the finest executives I’ve ever worked with and a trusted partner. His vision is for a unique, independent, focused company that will be home to some of the industry’s most valuable brands and assets across theme parks, film, television, streaming, sports and news. This new company will be well-positioned to pursue the significant opportunities that lie ahead to partner across the media and entertainment ecosystem, and will be poised to grow.”

Cavanagh added: “Both companies begin this next chapter from positions of strength. Comcast will continue to build on its leadership in connectivity, while NBCUniversal, together with Sky, will have the scale, brands, content and financial resources to compete as a premier global media and entertainment company. Each organisation will continue to be led by a management team with deep industry experience that will benefit from focused strategic priorities and the ability to pursue opportunities most relevant to their businesses.”