Oct. 26--Cable television giant Comcast Corp. plans to reclassify its publicly traded stock to simplify its equity structure and end confusion among investors.
Comcast long has had two classes of publicly traded stock. The Philadelphia company said Monday that it would like to eliminate Comcast's non-voting K shares. If the move is approved by shareholders, investors who hold K shares (which trade on the Nasdaq under CMCSK) would receive Class A shares (CMCSA).
For each K share owned, shareholders would receive one A share.
Shareholders as of Oct. 20 are eligible to vote in the election, which is expected to be held before the end of December.
"We believe the reclassification of CMCSK into CMCSA will benefit Comcast's shareholders in many ways, including by eliminating investor confusion caused by having two classes of publicly traded stock and improving the trading liquidity for all shareholders," the company said in a statement.
There are 347 million Comcast K shares currently traded on Nasdaq. In contrast, there are 1.4 billion outstanding shares of Class A common stock, which carry voting power.
The reclassification would not change or dilute the interests of Comcast Chairman and Chief Executive Brian Roberts. The Roberts family controls 33% of Comcast's voting shares through its ownership of Class B shares.
The Roberts' family shares are not publicly traded.
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