PHILADELPHIA — Comcast is planning a major corporate split that would separate its media and entertainment business from its cable, internet and technology operations.
The Philadelphia-based company announced Monday that it plans to create two separate publicly traded companies by spinning off NBCUniversal and Sky. Comcast said the move is intended to allow each company to focus on its own strategy, invest for growth and create long-term shareholder value.
Under the plan, NBCUniversal would become a standalone global media and entertainment company. That company would include Universal’s film and television studios, NBC, Telemundo, Peacock, Bravo, Universal theme parks and Sky, Comcast’s European media business.
Comcast would remain focused on connectivity and technology, including residential internet, business services, broadband and wireless operations.
Comcast co-CEO Mike Cavanagh is expected to become CEO of the new NBCUniversal company. Former Comcast Chief Financial Officer Michael Angelakis is expected to return as CEO of Comcast once the separation is complete. In the meantime, Angelakis will serve as a strategic adviser. Comcast Chairman and co-CEO Brian Roberts is expected to remain actively involved with both companies.
“The transaction we are announcing will unlock a more entrepreneurial management approach and open up a multitude of new opportunities for each business,” Roberts said, according to Reuters.
Once the transaction is completed, Comcast shareholders are expected to own shares in both Comcast and NBCUniversal. The split is expected to be completed in about a year, but still requires final Comcast board approval and regulatory approvals. Comcast also expects to retain up to a 19.9% stake in NBCUniversal for up to one year after the spinoff is complete.
The announcement comes as traditional media companies continue facing pressure from streaming competition, cord-cutting and major industry consolidation. Comcast shares jumped more than 20% in premarket trading following the announcement.
For Philadelphia, the move marks a major shift for one of the region’s largest and most recognizable companies, separating Comcast’s core internet and connectivity business from its global media brands.
