Comcast plans NBCUniversal and Sky spinoff

Comcast said Monday it plans to split itself in two, spinning off NBCUniversal and Sky into a separate publicly traded company and leaving its broadband and wireless operations in a stand-alone Comcast business.

The move would separate Comcast’s media and entertainment assets from its connectivity-focused operations. Existing Comcast shareholders would receive shares in both companies after the planned tax-free spinoff, the company said.

“Upon completion of the transaction, Comcast shareholders will own shares in both Comcast and NBCUniversal, creating two focused industry leaders, each with significant scale, strong financial profiles and distinct strategic opportunities,” Comcast said in a statement.

The new NBCUniversal would include the company’s theme parks division, Universal film and television studios, the NBC and Telemundo networks, Peacock, Bravo and Sky, the British broadcaster Comcast bought in 2018. Comcast would continue to hold its “broadband, wireless and entertainment platforms.”

Investors welcomed the announcement before the market opened. NBC News reported Comcast’s stock surged more than 22% in premarket trading after the announcement. CBS News reported shares rose $4.85, or 21%, to $28.02 in premarket trading.

Comcast said the separation is expected to be completed in about a year. The company expects to retain a stake of up to 19.9% in NBCUniversal for up to a year after the spinoff is completed.

The company said its board and management believe the split will allow each business to focus on its own priorities.

“Comcast’s board and management team believe each company will be better positioned to pursue its own strategic priorities, invest for growth and create long-term shareholder value as independent entities,” the statement said.

Mike Cavanagh, Comcast’s co-CEO, will lead the new NBCUniversal. Comcast will be led by Michael Angelakis, a former chief financial officer who is returning to the company. Comcast Chairman and co-CEO Brian Roberts will “continue to be actively involved in the leadership” of both companies, “working in partnership with the CEOs of both companies,” Comcast said.

“Both companies begin this next chapter from positions of strength,” Cavanagh said. “Comcast will continue to build on its leadership in connectivity, while NBCUniversal, together with Sky, will have the scale, brands, content and financial resources to compete as a premier global media and entertainment company.”

The planned split follows Comcast’s earlier spinoff of other cable networks, including MSNBC, now MS Now, and CNBC, into a separate company called Versant. It also comes during a period of dealmaking in the media industry, after Paramount Skydance agreed to buy Warner Bros. Discovery for $110 billion. The Justice Department signed off on that merger earlier this month.