Comcast to spin off NBCUniversal and Sky into separate media company
US media group Comcast plans to spin off its media operations, including Sky and NBCUniversal, into a new publicly listed company. The restructuring will take a year, leaving investors with shares in both Comcast and the new entity.
Comcast, the US telecommunications and media giant, has announced its intention to spin off its media division, which includes Sky and NBCUniversal (encompassing the Hollywood film studio, TV network, and theme parks), into a separate publicly traded company. The move comes eight years after Comcast acquired Sky’s European operations for £31 billion.
Upon completion, investors will hold shares in both Comcast, which will continue to provide broadband and mobile services to 65 million US households, and the new NBCUniversal company. Brian Roberts, co-CEO of Comcast, said the separation would “unlock a more entrepreneurial management approach” for each business.
NBCUniversal, which includes streaming service Peacock and the NBC television network, will be led by Mike Cavanagh, currently co-CEO of Comcast. Roberts stated that Cavanagh’s vision is for “a unique, independent, focused company that will be home to some of the industry’s most valuable brands and assets across theme parks, film, television, streaming, sports and news.”
When Comcast acquired Sky in 2018, it committed to funding Sky News for a decade, with annual increases linked to inflation. As that commitment nears its end, questions arise about whether Comcast will continue full funding. Sky News has an annual budget of about £100 million but is believed to lose up to £80 million. David Rhodes, executive chair of Sky News, has previously noted that Comcast’s commitment provides more security than most other organizations.
The spin-off has renewed speculation about Sky News’ long-term plans. Comcast opted not to renew a licensing agreement with News Corporation for the Sky News brand in Australia; Sky News Australia will rebrand as News24 later this year. Last month, Sky exited its controversial news joint venture with the United Arab Emirates, Sky News Arabia. Last year, Dana Strong, Sky’s CEO, told staff the broadcaster would continue to back Sky News regardless of Comcast’s support.
Sky is also weeks away from formally announcing its £1.6 billion takeover of ITV’s media and entertainment operations, including free-to-air channels and the ITVX streaming platform. If regulatory hurdles are cleared, the NBCUniversal spin-off will control 40% of ITN, the news producer for ITV, Channel 4, and Channel 5, becoming its largest shareholder.
Since buying Sky, Comcast has written down its value by nearly a quarter, and last year agreed to sell Sky Deutschland to RTL. NBCUniversal is building its first European theme park, Universal United Kingdom Resort near Bedford, set to open in 2031 and expected to attract about 8.5 million visitors in its first year.
Earlier this year, Comcast completed the spin-off of US cable networks including MSNBC, E!, and SYFY into a new publicly traded company, Versant, as traditional TV audiences continue to decline.
