Comcast plans to split its cable and technology business from NBCUniversal and Sky. The company says the move will create two stronger businesses with clear growth strategies.

The planned tax-free spin-off will allow Comcast shareholders to own shares in both companies. Comcast aims to complete the separation by mid-2027. However, the deal still needs board approval, regulatory clearance and financing.

Why Comcast Is Splitting

Comcast said the media and communications industry has changed significantly since it took full control of NBCUniversal in 2013. The company believes both businesses will perform better as independent firms.

“As technological innovation, consumer behaviour and competitive dynamics continue to reshape both media and communications, Comcast’s board and management team believe each company will be better positioned to pursue its own strategic priorities, invest for growth and create long-term shareholder value as independent entities,” Comcast said.

Chairman and co-CEO Brian Roberts described the decision as an important step for the company.

“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,” Roberts said.

Leadership Changes

Current Comcast co-CEO Mike Cavanagh will lead the new NBCUniversal. Former Comcast Chief Financial Officer Michael Angelakis will become CEO of the stand-alone cable company after the split.

Cavanagh said both companies have strong foundations for future growth.

“Comcast will continue to build on its leadership in connectivity, while NBCUniversal, together with Sky, will have the scale, brands, content and financial resources to compete as a premier global media and entertainment company. Each organisation will continue to be led by a management team with deep industry experience, benefiting from focused strategic priorities and the ability to pursue opportunities most relevant to their businesses. I’m personally thrilled to continue leading NBCUniversal into the future. With our iconic brands and theme parks, leading franchises and incredible creative talent, we are well-positioned for long-term value creation.”

Next Steps

Comcast expects to maintain a 19.9% stake in NBCUniversal for up to one year after the spin-off. It plans to sell that stake over time in a tax-efficient manner.

The announcement follows Comcast’s recent separation of Versant Media. That deal moved several cable television brands into a separate company, marking another major change in Comcast’s business strategy.