Comcast shares jumped nearly 17% on Monday after the company announced it would spin off its NBCUniversal and Sky media and entertainment businesses, retaining its cable, wireless, and broadband operations along with up to a 19.9% stake in the new entity. The move addresses long-standing investor concerns over a conglomerate discount, with the stock trading at levels not seen since May 2014. A valuation analysis suggests the two standalone businesses could be worth a combined $265.6 billion, about 55% above Comcast's current enterprise value of $171.84 billion, implying a share price of $51. The Content & Experiences segment, which includes NBC, Peacock, Universal Pictures, and theme parks, generated $5.28 billion in trailing 12-month adjusted EBITDA and could be valued at $105.6 billion using a 20-times multiple, while the Connectivity & Platforms segment could be worth $160 billion at five times EBITDA.
Comcast CorpComcast announced spin-off of NBCUniversal and Sky to address conglomerate discount, with valuation implying 55% upside.
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