Comcast to Spin Off NBCUniversal, Sky with 19.9% Stake as Shares Jump 9%
Comcast will spin off NBCUniversal and Sky in a tax-free deal, becoming a pure-play broadband provider while retaining a 19.9% stake to monetize over 12 months. Seaport Global’s upgrade to Buy followed a stock surge of more than 9%, low P/E of 6.6 and 5.7% dividend yield.
1. Spin-Off Structure
Comcast will separate its NBCUniversal and Sky media units through a tax-free spin-off, creating a standalone pure-play broadband provider. The parent company will retain a 19.9% equity stake in the new media entity and plans to monetize that stake within 12 months.
2. Market Reaction and Upgrade
Shares of Comcast surged more than 9% upon news of the spin-off, reflecting investor enthusiasm for a streamlined business model. Seaport Global subsequently upgraded the stock to Buy, citing the separation as a catalyst for a valuation re-rating.
3. Valuation and Dividend Outlook
Post-split, Comcast trades at a P/E ratio of 6.6, underscoring its low valuation relative to industry peers. The company offers a 5.7% dividend yield, supported by 17 consecutive years of dividend growth and a 33% payout ratio.
