Comcast Co-CEOs Say Split Won't Trigger Acquisition Spree
Comcast executives told investors that the planned division of the company into a media unit and a distribution unit is intended to focus each business on organic growth, not to launch a wave of mergers and acquisitions.
Comcast Co-CEO Brian Roberts told investors on a conference call that the company’s upcoming split into two separate entities will not set the stage for a merger-and-acquisition binge. He said the move is designed to place each business in the strongest position to create value, monetize assets and pursue organic growth strategies. Co-CEO Mike Cavanagh, who will head the NBCUniversal-Sky unit, echoed the sentiment, adding that the plan is to build and invest for growth and explore adjacent opportunities while responding to changing consumer behavior.
The split, announced early Monday, will separate NBCUniversal and Sky into an entertainment-focused company, while the remaining assets – pay-TV, broadband and wireless – will form a distribution-focused entity. Roberts said the separation is about giving two “exceptional businesses” greater focus, agility and the ability to capitalize on future opportunities.
Roberts also explained that aligning Sky with NBCUniversal makes strategic sense because Sky operates as a premium media and entertainment business with strong brands in news, sports and European markets. He said the combination will increase scale, enhance the global profile of the media unit and create more opportunities to invest in content.
The 20-minute call featured CFO Jason Armstrong reading pre-selected analyst questions; a query about Sky’s pending acquisition of ITV was not addressed. The ITV deal, valued at £1.6 billion, is expected to close in the coming weeks and will reshape the UK broadcasting landscape.
