Summary
Comcast Corporation (CMCSA) announced a significant strategic move on March 30, 2015, by entering into a material definitive agreement to establish a new, independent company focused on investing in and operating growth-oriented businesses. Michael J. Angelakis, formerly Vice Chairman and CFO of Comcast, will lead this new venture as its Chief Executive Officer and will also serve as a Senior Advisor to Comcast. This new company will have a ten-year term and aims to invest in both domestic and international growth opportunities. Comcast has committed up to $4 billion in capital to this new entity, receiving non-voting preferred equity interests and warrants for non-voting common equity. The company's management team, led by Mr. Angelakis, will also contribute capital and receive equity. This structure suggests Comcast is seeking to leverage external growth opportunities and Mr. Angelakis's expertise while potentially de-consolidating certain investments. The arrangement is exclusive for Comcast as the sole non-management investor.
Key Highlights
- 1Comcast to invest up to $4 billion in a new strategic investment company.
- 2Michael J. Angelakis to lead the new company as CEO and serve as Senior Advisor to Comcast.
- 3New company to focus on investing in and operating growth-oriented businesses, domestically and internationally.
- 4Michael J. Angelakis will resign from his roles as Vice Chairman and CFO of Comcast.
- 5Comcast will receive non-voting preferred equity interests and warrants for non-voting common equity in the new company.
- 6Management team, including Mr. Angelakis, will also invest capital and receive equity.
- 7The new company will have a ten-year term, commencing operations in 2015 or early 2016.