As the broadband-content synergy collapses, the U.S. media reshuffle opens a window for Korean content
Comcast is spinning off NBCUniversal and its British subsidiary Sky into a separate publicly traded company, a move that unwinds the vertical-integration empire CEO Brian Roberts spent 15 years assembling. The model of producing content and carrying it over a company-owned cable network, once a source of scale advantage, lost its footing as consumers scattered their viewing across dozens of streaming apps. With the synergy that had bound connectivity and content under one roof gone, Comcast has chosen to split the two and let each run at its own pace.
On June 29, Comcast said it will separate its media and entertainment business from its technology and connectivity business into two independent public companies. The tax-free spin-off will leave Comcast shareholders holding stock in both firms. The transaction is expected to close in about a year, pending board, tax, regulatory and financing approvals. Comcast may retain up to a 19.9% stake in NBCUniversal for up to a year after the split.