Comcast Corporation (NASDAQ:CMCSA) released a statement stating that it will form a new strategic company to invest in fast growing companies in the US and abroad. Michael J. Angelakis, the vice chairman and CFO of Comcast, will be leading the new investment firm and will also be a financing partner.
Comcast is an American international mass media company and is the largest broadcasting and Cable Company in the world. It is the largest provider of Internet in the USA. The company founded its first Venture Capital Fund in 1999, as Comcast Interactive Captial.
Comcast is putting in $4billion into the investment venture while Angelakis will put in at least $40 million. Another 4.1 billion will come from the senior management of the new firm.
The Philadelphia-based Comcast already has a venture capital arm. The new firm will begin operations in 2015 to early 2016 according to the company.
Comcast Venture Capital invests in startups ranging from $2 million to $15 million. Its past investments include online publisher Vox Media and e-commerce start up Birchbox.
The new firm will be making larger investments than Comcast Ventures but smaller than the $45 billion buyout of Time Warner Cable Inc (NYSE:TWC) according to a source close to Comcast.
The new start-up will likely invest in start-ups that have already been around for sometime and will look to invest and operate some firms. Tech and telecom companies like Google Inc (NASDAQ:GOOGL) and Verizon Communications Inc. (NYSE:VZ) have invested in start-ups ranging from healthcare to entertainment.
Angelikis has an annual pay package of $8 million for his role as head of the new firm and another 100,000 form his role as a senior adviser.
Comcast Chairman in his statement said that Comcast has the ability and drive to invest in innovative companies. He also added that such venture will not only benefit the start-ups but will also help Comcast.