The author is a Reuters Breakingviews columnist. The opinions expressed are her own.

By Jennifer Saba

NEW YORK, June 29 (Reuters Breakingviews) - After 15 years of extolling the combination of content and distribution, boss Brian Roberts is splitting NBC Universal from the cable business. The separated parts could be worth 20% more than they are today. Moreover, a breakup lays the groundwork for other helpful M&A.

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CONTEXT NEWS

Comcast said on June 29 that it plans to separate into two publicly traded companies through a tax free spinoff of NBC Universal and Sky, unwinding the unified strategy it began in 2009 when it agreed to buy 51% of NBC Universal from General Electric.

Mike Cavanagh will become sole CEO of NBC Universal after serving as Comcast co-CEO with Brian Roberts since 2022. Former CFO Michael Angelakis will return to the company as CEO of the cable and broadband holdings. Roberts, whose family controls Comcast, will continue to be active in both companies.

The separation is expected to be completed in one year and is not subject to shareholder approval. NBC Universal will have the same dual-class share structure as Comcast, with Roberts retaining voting power of more than 33%.

Comcast will keep a 19.9% stake in NBC Universal for up to one year after the completion of the spin.

Goldman Sachs and PJT Partners are serving as financial advisors.