Comcast is breaking itself in two. The company announced plans on June 29 to execute a tax-free spin-off of its media and entertainment divisions, including NBCUniversal and Sky, into a separate publicly traded company.
The remaining Comcast entity will focus exclusively on its broadband and wireless connectivity business. Investors didn’t need much convincing: shares spiked over 23% in pre-market trading.
Two companies, two leaders
Mike Cavanagh will serve as CEO of the newly formed NBCUniversal/Sky media company. Michael Angelakis, the former CFO, will lead the connectivity-focused Comcast that remains after the split.
Comcast plans to retain a minority stake of up to 19.9% in the new media entity for up to one year after the spin-off closes. The deal is expected to take roughly a year to complete, pending the usual regulatory approvals.
