NBCUniversal CEO Jeff Shell has been fired over allegations of inappropriate conduct with a female employee, including allegations of sexual harassment. Comcast, the parent company, has immediately terminated Shell’s employment with cause, meaning he won’t be entitled to severance pay. The development leaves unanswered questions about who will take over as his permanent successor and how they will handle key decisions, such as the future of Hulu and Peacock, NBCUniversal’s streaming service. For the time being, trusted corporate executive Mike Cavanagh will take over as NBCUniversal CEO. Cavanagh is already overseeing the entertainment arm in addition to his Comcast president role.
The allegations of inappropriate conduct against Jeff Shell were made by CNBC journalist Hadley Gamble, who filed a complaint that led to the investigation. The law firm representing Gamble has expressed disappointment that her name was released, resulting in a violation of her privacy.
The Fallout from Jeff Shell’s Firing
The change in leadership at NBCUniversal also raises concerns about the future of Hulu and Peacock, both of which were long overseen by Jeff Shell. The decision-making power in these areas will now shift to Cavanagh, who has long been involved in the budgets and strategies of NBCUniversal. Company insiders and Wall Street analysts consider Cavanagh to be a competent, no-nonsense leader who will make more deliberate decisions than Shell. As a result, there is no urgency in naming a Shell successor, as Cavanagh is seen as being able to manage the entertainment arm in addition to his existing role.
Jeff Shell, former CEO of NBCUniversal, has been fired by Comcast over allegations of inappropriate conduct with a female employee. (Image Credit:- NBC News)
There is a list of potential internal replacements for the top NBCUniversal job, including NBCU Television & Streaming head Mark Lazarus, Universal Filmed Entertainment chair Donna Langley, Pearlena Igbokwe, chair of Universal Studios Group, Mark Woodbury, head of Universal Destinations & Experiences, and Linda Yaccarino, head of global advertising and partnerships. Some of these individuals are also seen as possible contenders for the role of NBCUniversal CEO.
NBCUniversal in Transition
Jeff Shell had been a proponent of collapsing theatrical windows in favor of moving content to video-on-demand. NBCUniversal followed his lead with a historic deal with theater owners that allowed movies to become available on premium VOD as short as 17 days after their release on the big screen. Under Shell’s leadership, NBCUniversal launched its streaming service, Peacock, which has been gaining more subscribers, although it still has fewer subscribers than Netflix and Disney+. It remains to be seen how Cavanagh will handle the future of Hulu and Peacock and whether he will be as aggressive as Shell in investing in Peacock.
The firing of Jeff Shell over allegations of inappropriate conduct leaves questions about the future of Hulu and Peacock and who will take over as the permanent successor to Jeff Shell. For the time being, Mike Cavanagh, a trusted corporate executive, will oversee NBCUniversal, which may further cement his standing as a likely successor to Brian Roberts, the Chairman and CEO of Comcast.