Comcast To Separate Into Two Public Companies In Tax-Free NBCUniversal Spin-Off — Stock Rises

Comcast Corporation (NASDAQ:CMCSA) shares are trading higher after the company announced it will separate into two independent publicly traded companies through a tax-free spin-off of NBCUniversal and Sky.

The Separation

The tax-free spin-off is expected to be completed in approximately one year, subject to customary conditions including final Board approval, receipt of tax opinions, regulatory approvals, and completion of financing arrangements. Upon completion, Comcast shareholders will own shares in both companies.

Comcast intends to retain a stake of up to 19.9% ownership in NBCUniversal for up to one year after the spin-off closes, which it intends to monetize in a tax-efficient manner over time. Both companies will carry the same dual-class share structure as the current Comcast, and each is expected to maintain a strong investment grade balance sheet.

What Each Company Will Be

The remaining Comcast will focus on its technology and connectivity businesses—broadband, wireless, and entertainment platforms—serving more than 65 million homes and businesses across the nation’s largest converged network. Michael Angelakis, Comcast’s former Chief Financial Officer, will become CEO of Comcast upon completion of the separation.

NBCUniversal will be a standalone global media and entertainment company anchored by its theme parks division, Universal film and television studios, NBC and Telemundo networks, Peacock, Bravo, and Sky—its European media business. Mike Cavanagh, currently Co-CEO of Comcast, will lead NBCUniversal as its CEO.

Chairman and Co-CEO Brian Roberts will continue to be actively involved in the leadership of both companies.

“This is a very exciting day for our company,” said Roberts. “The transaction we are announcing will unlock a more entrepreneurial management approach and open up a multitude of new opportunities for each business.”

Comcast Shares Soar

CMCSA Price Action: At the time of publication, Comcast shares are trading 22.66% higher at $28.42, according to data from Benzinga Pro.

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