Comcast announced that it would split its business into two independent listed companies and that once the transaction was completed, the company would focus on broadband, wireless and business connectivity. NBCUniversal operates independently and takes over the media, streaming media, video, theme parks and Sky related assets.
This arrangement is promoted by tax-free separation. According to Comcast, the strategic focus of the latter two companies would be clearer and would also help to raise long-term value.
What do we focus on when we split up?
- Comcast continues to operate broadband, wireless and business connections
- NBCUniversal Independent Management of Media, Streaming Media, Film and Television
- Sky will also be integrated into the new NBCUniversal system
Comcast further states that after the break-up, the company will continue to provide services to more than 65 million households and businesses, building on integration networks, fibre-optic infrastructure and technical platforms, and continuing to expand wireless operations and business services.
Management Synchronization
The company simultaneously announced leadership changes. The current co-chair, CEO Mike Cavanagh, will serve as NBCUniversal CEO. The former Chief Financial Officer, Michael Angelakis, will return after the completion of the transaction, act as Comcast CEO and participate in the transition as a strategic adviser.
Chairman of Comcast, Brian L. Roberts, said that the split was an important node. The company believes that when it operates independently, the two sides will be more flexible and able to drive growth in each other.