A person walks through the lobby at the Comcast NBC Universal corporate headquarters in Philadelphia on Nov. 20, 2024. Bastiaan Slabbers/Reuters
Comcast has announced plans to separate its communications and technology business from its media and entertainment operations. Through a tax-free spin-off, it will create two companies under Comcast and NBCUniversal.
Under the proposal, NBCUniversal will include Universal Pictures, Universal Television, the NBC and Telemundo broadcast networks, Peacock, Bravo, Universal theme parks, and European media company Sky.
Comcast will retain its broadband, wireless, business services, and technology operations, the company said in its restructuring announcement on June 29. Shareholders will receive shares in both companies through a tax-free spin-off.
Chairman and Co-Chief Executive Officer Brian L. Roberts will remain involved with both companies after the separation.
Mike Cavanagh will become chief executive officer of NBCUniversal, while former Comcast Chief Financial Officer Michael Angelakis will return as chief executive officer of Comcast after the transaction closes. Angelakis will serve as a strategic adviser until then, Comcast said.
Roberts said the restructuring will give each company greater independence and “unlock a more entrepreneurial management approach.”
Comcast will continue focusing on connectivity services, while NBCUniversal will become an independent media company built around its film, television, streaming, sports, news, and theme park businesses.
Cavanagh said both companies begin the separation from strong positions. “I’m personally thrilled to continue leading NBCUniversal into the future,” he said.
Angelakis said he looks forward to returning to Comcast after previously serving as the company’s chief financial officer. He said Comcast’s technology assets, customer base, and innovation provide “a powerful foundation for the future.”
Transaction Expected Next Year
The split is expected to close in approximately one year.
NBCUniversal will retain the company’s dual-class share structure after becoming independent. Comcast said it expects to keep a stake of up to 19.9 percent in NBCUniversal for up to one year after the separation before reducing that ownership over time.
Investment-grade balance sheets will be established for both companies before the transaction is completed.
The company added that there is no assurance that the proposed transaction will be completed or that it will close under the current terms or timetable.
Goldman Sachs & Co. LLC and PJT Partners are serving as financial advisers on the transaction. Investors will discuss the proposed separation in a June 29 conference call.
Data Breach Lawsuit
The restructuring comes as Comcast faces multiple deadlines in a proposed $117.5 million class-action settlement over an October 2023 cybersecurity breach that exposed personal information of millions of Xfinity customers.
The settlement stems from a lawsuit alleging that Comcast failed to adequately protect customers.
Comcast disclosed the breach in December 2023 and has denied any wrongdoing or violation of the law.
Eligible customers have until July 1 to object to the proposed settlement or opt out of it. A final approval hearing is scheduled for Aug. 5. Compensation claims must be submitted online or postmarked by Sept. 14, according to the settlement administrator.
Jack Phillips contributed to this report.
