The $100 billion behemoth that is Comcast is shaking things up with a bold bid to divide its operations into two separate entities. This seismic move will split its media and tech assets, sending shockwaves through the entertainment industry as its prized Sky UK TV brand is set to become part of NBCUniversal - one of the new companies born from this corporate upheaval.
The break-up, expected to be completed within a year, will see Comcast's diverse portfolio chopped in two. One new company, NBCUniversal, will bring together its television, film, and theme park divisions, alongside its Peacock streaming platform, plus Sky UK - making it the envy of every British sports fan who wants to watch their favourite teams on the biggest stage. The other entity, retaining the Comcast name, will focus on its broadband and mobile services, as well as its US cable television business.
This is a make-or-break moment for Sky in the UK, with negotiations under way to snap up a chunk of ITV - the nation's largest free-to-air broadcaster. A deal worth £1.6 billion would see Sky acquire ITV's terrestrial broadcast channels and streaming service, ITVX, but ITV Studios will remain an independent production powerhouse behind shows like 'Coronation Street' and 'I'm A Celebrity... Get Me Out of Here!'.
The timing of Comcast's announcement is no coincidence, with the industry already bracing itself for a lengthy and complex regulatory battle over ITV's separation. London traders seemed unfazed by the news from across the Atlantic, but shares in ITV did tick up 1 per cent to reach 83p - not bad for a day that's all about change.
Comcast's decision follows a dire year for its stock price, which has plummeted nearly 30 per cent. But group chief executive Brian L. Roberts is undeterred, calling the announcement "a very exciting day" and promising a new era of entrepreneurial freedom for each business. Mike Cavanagh, Comcast's former CFO, will take the reins at NBCUniversal.
Source: City A.M.