Comcast’s Stock Soars Pre-Market Amid Spinoff Announcement
Comcast announced a spin-off of NBCUniversal prompting the stock to skyrocket early Monday.
Comcast announced a spin-off of NBCUniversal prompting the stock to skyrocket early Monday.
The new company will be a new version of NBCUniversal alongside Sky — its European media arm — will be a new publicly traded company, according to CNN. During pre-market trading Comcast shares soared 17%, with the gains dipping to 9% after the market opened, CNBC reported.
The new company contains Universal movie studios and theme parks, the Peacock streaming service and NBC, Telemundo and Bravo, per CNN.
The separation “will unlock a more entrepreneurial management approach and open up a multitude of new opportunities for each Business,” Comcast CEO Brian Roberts told the outlet.
“Both companies begin this next chapter from positions of strength. Comcast will continue to build on its leadership in connectivity, while NBCUniversial, together with Sky, will have the scale, brands, content and financial resource to compete as a premier global media and entertain ment company,” Mike Cavanaugh, Co-Chief Executive Officer of Comcast Corporation, said in a press release.
The spinoff is planned out to take the course of the year, Comcast told CNN.
“Comcast expects to retain a stake of up to 19.9% ownership position in NBCUniversal for up to one year after completion of the spin, which it intends to monetize in a tax-efficient manner over time,” the press release said.