GoKawiilIn a media environment that's seen a surge in mergers and acquisitions, Comcast plans to divide into two companies. The company announced on Monday that it plans to split its media and entertainment brand from its telecom business. NBCUniversal and Sky will spin off as a separate, independent entity. The separation is a tax-free transaction that will give Comcast shareholders stock ownership in both companies, and it's expected to be completed within a year.
"This is a very exciting day for our company," said Brian L. Roberts, Comcast's chairman and co-CEO, in a statement. "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."
The company cited competition and "rapidly changing markets" as reasons for the change, and aims to refine its focus with the split. Comcast points to its position in the technology sector serving broadband, wireless and cable customers, and spotlighted NBCUni's foothold in streaming, theme parks, movies and television. The announcement follows news that Comcast-owned Sky has committed to a $2 billion deal to buy the streaming and broadcast arms of UK free-to-air TV network ITV.
Sky, a pay-TV broadcaster based in the UK, offers film and TV content, streaming platforms, smart TVs, and mobile and internet connectivity. Its programming includes live sports, Sky News and original shows such as The Day of the Jackal (which streams on Peacock in the US).
Sky will be under the NBCUniversal umbrella with Mike Cavanaugh taking the reins as CEO of the venture, while Michael Angelakis will step up as Comcast's new CEO.
This new split may see each company positioned for unique partnership and licensing opportunities within the media realm, possibly expanding which programming, subscriptions or bundles customers are offered. Previously, Comcast spun off some of its NBCUniversal-owned properties into Versant, a separate company that includes ownership of USA Network, E!, CNBC, Rotten Tomatoes, Fandango, GolfPass and more.