Comcast Corp. confirmed Monday a large investor has asked the cable giant’s CEO Brian Roberts to step down, unhappy with the company’s financial performance.
Chieftain Capital Management made the request in a Jan. 14 letter sent to Comcast, after saying its discussions with company executives had not provided the desired result.
“We welcome input from our shareholders and take their views seriously,” said a Comcast spokesman. “We have met with Chieftain and have discussed their perspective on numerous occasions. While we have expressed our disagreement with Chieftain’s perspective in the past, we will review Chieftain’s most recent correspondence and will respond in due course.”
Comcast did not say when the review would be complete or what action would result from it. After revising its 2007 capex upward of $300 million last month, Wall Street blasted the stock, sending it to then record lows.
Large cablecos in general have faced challenges on the stock front over the past six to 12 months, which, when combined with strengthening competition from telcos such as AT&T and Verizon, has many wondering what the future holds. (
After months of relative quiet, Roberts took the stage at the Consumer Electronics Show two weeks ago in Las Vegas to discuss new and ongoing Comcast initiatives.
Comcast remains steadfast in its direction.
“Comcast continues to perform well, consistently delivering superior revenue and cash flow growth and significant free cash flow, despite a challenging economy and an increasingly competitive environment,” said the spokesman. “Our management team is intensely focused on executing our strategic plan, investing for profitable growth, and creating long-term shareholder value.”
Chieftain Capital did not reply to numerous requests for comment.
Comcast Corp. www.comcast.com
