Dive Brief:
- Comcast’s former CFO Michael Angelakis will step in as its CEO as part of a planned split into two independent publicly-traded entities via a tax-free spinoff of its media businesses NBCUniversal and Sky, according to a Monday announcement.
- The split will see NBCUniversal — the owner of numerous media and entertainment brands including CNBC, Universal Resorts and Peacock— become a standalone entity, while Comcast will retain its cable and internet business, according to the release. The business expects the separation to be complete in approximately a year.
- As part of its plan, the Philadelphia-based company named its Co-CEO Mike Cavanagh — who succeeded Angelakis as CFO in 2016 before assuming the CEO seat this January — as incoming CEO for NBCUniversal. Fellow co-CEO Brian Roberts, Co-CEO and executive chairman for Comcast, will continue to be “actively involved” in the leadership of both independent entities following the split, the company said.
Dive Insight:
Angelakis is rejoining Comcast after a near-decade absence. The executive previously served a nine-year span in the media and tech business’ top finance seat, first joining Comcast in 2006 as its CFO before stepping down in 2015, according to a New York Times article at the time.
Departing from Comcast, Angelakis founded Atairos, an independent strategic investment firm, where he has served as CEO and executive chairman since 2016, according to a company profile. He currently serves as a member of the board of directors in a number of public companies, including American Express, Exxon Mobil, Lucky Strike and TriNet Group, according to the Atairos profile.
“As our widely admired former CFO, Michael’s deep knowledge of the business and passion for technology — combined with the leadership of Steve Croney, Jason Armstrong and the entire Comcast management team — will serve us well as we continue to take bold actions in today's competitive environment,” Roberts said in a statement.
Angelakis will assume his role as CEO following the separation, joining in the interim as a strategic advisor, according to the Monday release.
He will take Comcast’s helm as the cable and internet company moves to detach from NBCUniversal 15 years after completing its mega-merger in 2013 in a deal which valued the combined company at about $40 billion.
The two new publicly-traded companies will be “better positioned to pursue its own strategic priorities, invest for growth and create long-term shareholder value as independent entities,” Comcast said, citing assertions from company leadership. Following the split, shareholders will receive equal shares in Comcast and NBCUniversal, according to the Monday release.
The planned seperation comes as media companies continue to navigate changing consumer preferences, such as a shift to streaming services — an increasingly competitive sector — which has affected traditional revenue streams.
For its first quarter, higher programming costs contributed to a jump in operating costs for Comcast’s media business, which includes NBCUniversal, according to its Q1 earnings report. Its media segment reported a $432 million loss in adjusted EBITDA for the quarter ended March 31, though revenue rose by 60% to $7.3 billion.
Comcast also reported a 31% slump in adjusted net income for its first quarter, reporting $2.9 billion compared to $4.1 billion for the prior year period. Earnings per share, meanwhile, plummeted by nearly 33% to $0.60, according to its April 23 earnings release.
Comcast is expected to report its Q2 earnings on July 23.
