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Comcast said Tuesday that it has struck an agreement with its CFO, Michael Angelakis, to establish a new company that will focus on investing in and operating growth-oriented companies, both domestically and internationally.
The new company will have total capital commitments of up to $4.1 billion, of which $4 billion will be invested by Comcast, at least $40 million will be invested personally by Angelakis, with the remainder coming from other senior members of the new company’s management team.
“This is a time of tremendous change and opportunity in our core technology and media industries, as well as in adjacent business areas. We believe the ability to establish entrepreneurial ventures that partner with and participate in the growth of innovative companies can be an important driver of strategic and financial value creation for our company,” said Comcast chairman and CEO Brian Roberts.
“As Comcast approaches the completion of the Time Warner Cable merger and related transactions, and the integration plans are well advanced, Michael is ready and excited to turn his attention to the next phase of his career and relationship with Comcast,” Roberts added.
Angelakis will serve as the CEO of the new company and “bring his strengths of investing in and operating companies, with benefits accruing to Comcast shareholders,” the cable giant said. “He will lead this new company with a mandate and the resources to pursue new areas of growth and diversification for Comcast.”
The new company will have an exclusive 10-year partnership with Comcast as sole outside investor. Comcast will immediately start a search for a new CFO, with Angelakis then serving as a senior advisor to Comcast.
Wells Fargo analyst Marci Ryvicker said: “We feel this is a well thought out personal decision by Mr. Angelakis that both satisfies his entrepreneurial nature and Comcast’s desire for growth. We do not believe that this indicates a new M&A path for Comcast, nor does it mean that Comcast is necessarily looking to buy additional cable companies. We also don’t believe that there is any particular path in mind right now, as this venture still sounds very nascent in nature.”
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