Comcast Announces a Separation of Connectivity and Media Units

Research evidence excerpt

Comcast Announces a Separation of Connectivity and Media Units

RBC Capital Markets, LLC

Jonathan Atkin (Analyst)

(415) 633-8589,

jonathan.atkin@rbccm.com

RBC Dominion Securities Inc.

Kirill Kozyar (AVP)

(416) 842-4730,

kirill.kozyar@rbccm.com

June 30, 2026

Comcast Announces a Separation of ConnectivityRESEARCH and Media Units

Our view: The proposed separation of the segments argues for the elimination of a holdco discount

on sum-of-the-parts valuation basis. However, in our view, suppressed valuation multiples in the

broadband and media spaces offer limited re-rate potential. We view the new entity structure as better

positioned for broadband consolidation and monetization opportunities, given the favorable regulatory

environment and increasing competitive pressure across the industry.EQUITY On June 29, 2026, Comcast announced its intention to separate into two independent publicly traded

companies through a tax-free spin-off of NBCUniversal and Sky. Upon completion of the transaction,

Comcast shareholders will own shares in both Comcast and NBCUniversal entities.

Transaction details. The structure of the transaction is designed as a tax-free spin-off to Comcast

shareholders. Management expects to close the transaction in 12 months, subject to Board approval,

tax opinions, regulatory approvals, and financing arrangements. Comcast will retain up to a 19.9% stake

in NBCUniversal for up to 1 year post-spin and plans to monetize the stake in a tax-efficient manner to

support deleveraging. Management has not shared the exact capital structure for each of the entities but

highlighted that the balance sheets will be investment-grade. Comcast finished 1Q26 with 2.4x leverage,

and the pause in buybacks, which we previously estimated at $5B over the next four quarters, will aid