Comcast Corporation (CMCSA) announced a landmark decision to split itself into two publicly traded companies by spinning off its media and entertainment assets — NBCUniversal and Sky — into a standalone entity. The news sent Comcast shares up as much as 23% in premarket trading, marking the biggest single-day jump since October 2008.
The tax-free spin-off, expected to close within 12 months, will leave the core Comcast business focused on broadband, wireless, and cable TV under Michael Angelakis, the company's former CFO. The newly formed NBCUniversal company will be led by current co-CEO Mike Cavanagh and will encompass Universal film and TV studios, NBC, Telemundo, Peacock, Bravo, theme parks, and the European broadcaster Sky.
Existing Comcast shareholders will receive shares in both companies upon completion of the transaction, with Comcast retaining up to a 19.9% stake in the new NBCUniversal for up to one year post-split. The move is part of a broader industry trend as legacy media companies grapple with cord-cutting and the shift to streaming, following Comcast's earlier restructuring that carved out cable networks like MSNBC and CNBC into Versant Media Group.
