Comcast announced on Sunday it will spin off NBCUniversal and Sky into a separate publicly traded company in a tax-free transaction expected to close within approximately one year. Comcast shares surged roughly 9% on the news. The new media company will encompass NBC, Telemundo, Bravo, Peacock streaming, Universal film and television studios, and Sky — the European satellite and streaming giant Comcast acquired for $40 billion in 2018.
Mike Cavanagh, currently Comcast co-CEO, will lead the newly independent NBCUniversal entity, while Michael Angelakis becomes CEO of the remaining Comcast, which will concentrate on its cable and broadband connectivity business. Brian Roberts, Comcast's longtime chairman, will stay actively involved with both companies. Comcast will retain up to 19.9% of NBCUniversal for up to one year following the separation. Sky is also reportedly pursuing a £1.6 billion acquisition of UK broadcaster ITV ahead of the split.
The breakup unwinds more than 15 years of vertical integration. "This transaction will unlock a more entrepreneurial management approach and open up a multitude of new opportunities for each business," Roberts said in a statement. The move acknowledges that cord-cutting and streaming competition have eroded the advantages of bundling content and distribution under one roof.