Comcast Commits Cash, CFO to New Company
Not content to sit back while the government reviews its proposed acquisition of Time Warner Cable, Comcast has dropped another bombshell on the industry. The service provider announced this morning that it has signed an agreement with CFO Michael J. Angelakis to form a new company focused on "investing in and operating growth-oriented companies, both domestically and internationally."
Thus far unnamed, the new company will work from an investment base of $4.1 billion. Comcast will commit $4 billion to that total, with new CEO Angelakis investing at least another $40 million, and other executives from the company's management team providing the remaining funds. Comcast's role as sole outside investor is exclusive for ten years.
It's unclear so far what relationship the new investment company might have with Comcast's existing venture arm Comcast Ventures. Comcast also hasn't yet detailed what types of investments the new company might pursue. True to the cable operator's core areas of business, Comcast Ventures has made serious financial commitments to organizations involved in video delivery, wireless technology and the connected home, among other sectors. Most recently, the venture firm joined Bessemer Venture Partners in a $38 million round of funding for the connected door lock company August.
The new Comcast-backed entity led by Angelakis is expected to open its doors in 2015 or early 2016. Angelakis will step down as Comcast CFO and move into a role as senior advisor to Comcast coinciding with his CEO position at the new company. According to an 8K filing, Angelakis will receive an annual CEO salary of $8 million plus $100,000 annually from Comcast for his advisory services. Comcast said it will begin an immediate search for a replacement CFO.
— Mari Silbey, special to Light Reading