Quick Overview

  • Comcast announced on Monday (April 27) that, as part of a plan to spin off its media businesses NBCUniversal and Sky intotwo independent publicly traded companiesthrough a tax-free separation, former Chief Financial Officer Michael Angelakis will serve as the company's CEO.
  • According to the announcement, after the spin-off, NBCUniversal—which owns numerous media and entertainment brands including CNBC, Universal Resorts, and Peacock—will become an independent entity, while Comcast will retain its cable and internet businesses. The company expects the separation to be completed within about a year.
  • As part of the plan, the Philadelphia-based company appointed its co-CEO Mike Cavanagh—who succeeded Angelakis as CFO in 2016 and becameco-CEO in January of this year—as the CEO-designate of NBCUniversal. The company said that the other co-CEO, Brian Roberts—Comcast's co-CEO and Executive Chairman—will continue to be "actively involved" in leading both independent entities after the spin-off.

In-Depth Analysis

Angelakis returns to Comcast nearly a decade after leaving. According to The New York Times' reporting at the time, the executive, who had served in top financial roles at media and technology companies for nine years, joined Comcast in2006 as CFOand stepped down in2015。

After leaving Comcast, Angelakis founded Atairos, an independent strategic investment company, and has served asits CEO and Executive Chairman since 2016. According to Atairos' company profile, he currently serves on the boards of several publicly traded companies, including American Express, Exxon Mobil, Lucky Strike, and TriNet Group.

Roberts said in a statement: "As our highly respected former CFO, Michael's deep understanding of the business and passion for technology—combined with the leadership of Steve Croney, Jason Armstrong, and the entire Comcast management team—will help us continue to take bold actions in today's competitive environment."

According to Monday's announcement, Angelakis will officially assume the role of CEO after the spin-off is completed and will serve as a strategic advisor during the transition period.

He will take the helm as Comcast, the cable and internet company, divests NBCUniversal, 15 years after completing thatapproximately $40 billion merger dealin 2013.

Comcast cited company leadership as saying that after the spin-off, the two new publicly traded companies will be "better positioned to pursue their respective strategic priorities, invest in growth, and create long-term shareholder value as independent entities." According to Monday's announcement, upon completion of the spin-off, shareholders will receive proportional shares of equivalent value in both Comcast and NBCUniversal.

The spin-off plan comes as media companies continue to grapple with shifts in consumer preferences, such as the transition to streaming services—an increasingly competitive field—which has impacted traditional revenue streams.

According to its first-quarter earnings report, Comcast's media business (including NBCUniversal) saw operating costs rise due to higher programming costs. In the quarter ending March 31, its media segment reported an adjusted EBITDA loss of $432 million, but revenue grew 60% to $7.3 billion.

Comcast also reported that its first-quarteradjusted net incomefell 31% to $2.9 billion, compared with $4.1 billion in the same period last year. According to its earnings report released on April 23, earnings per share plunged nearly 33% to $0.60.

Comcast expects torelease its second-quarter earnings on July 23。