Comcast Corporation (NASDAQ:CMCSA) shares are trading higher after the company announced it will separate into two independent publicly traded companies through a tax-free spin-off of NBCUniversal and Sky.
The Separation The tax-free spin-off is expected to be completed in approximately one year, subject to customary conditions including final Board approval, receipt of tax opinions, regulatory approvals, and completion of financing arrangements.
Upon completion, Comcast shareholders will own shares in both companies.
Comcast intends to retain a stake of up to 19.9% ownership in NBCUniversal for up to one year after the spin-off closes, which it intends to monetize in a tax-efficient manner over time.
Both companies will carry the same dual-class share structure as the current Comcast, and each is expected to maintain a strong investment grade balance sheet.
