Comcast said on June 29 that it intends to separate NBCUniversal, including Sky, from its connectivity and technology operations through a tax-free spin-off, creating two publicly traded companies and distributing shares in both to existing Comcast shareholders.
The company said the transaction is expected to be completed in about one year, subject to board approval, tax opinions, SEC registration through a Form 10, regulatory approvals, financing arrangements and other customary closing conditions. It also said the separation does not require a shareholder vote.
Comcast said Brian L. Roberts will remain involved in the leadership of both companies, Mike Cavanagh will become chief executive of NBCUniversal, and former Comcast chief financial officer Michael Angelakis will become chief executive of Comcast after joining as a strategic advisor.
The company said NBCUniversal will retain Comcast’s dual-class share structure, and that Comcast expects to keep up to a 19.9% stake in NBCUniversal for up to a year after the spin before monetizing it in a tax-efficient manner. Comcast also said both businesses are intended to have investment-grade balance sheets and that it will pause share repurchases during the separation process.