Comcast names insider Michael Cavanagh as co-CEO ahead of cable spinoff

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(Reuters) -Comcast said on Monday it will appoint President Michael Cavanagh as co-CEO, adopting a dual chief executive model as the company prepares to spin off several NBCUniversal cable networks as part of a restructuring.

Cavanagh will take up the new role in January and also join the company’s board, serving alongside Brian Roberts, who will continue as chairman and co-CEO. 

Several high-profile firms such as Oracle and Netflix have adopted a co-CEO model to better manage their operations as they become more complex and globally diversified.

Comcast plans to spin off its NBCUniversal cable channels, including USA Network and CNBC, into a new company called Versant later this year amid shifting market dynamics and growing interest in streaming platforms.

“He is the ideal person to help lead Comcast as we manage the pivot we are making to drive growth across the company,” Roberts said in a statement.

Comcast is also planning a restructuring of its largest business unit, connectivity and platforms that includes Xfinity internet, mobile and pay TV services, Reuters reported earlier this month. It plans to eliminate a layer of management and cut jobs as part of efforts to centralize operations.

The company is also working to turn around its broadband business, which has faced intense competition from wireless telecom providers that are aggressively promoting internet and mobile bundle deals.

Comcast has responded by introducing national pricing, five-year price guarantees, and bundled mobile and broadband packages.

Cavanagh joined Comcast as its finance chief in 2015. He was previously also the JPMorgan’s CFO for six years, and co-head of the financial giant’s corporate and investment bank.

(Reporting by Harshita Mary Varghese in Bengaluru; Editing by Leroy Leo)