Comcast to split into two companies, spin off NBCUniversal and Sky

Comcast announced Monday that it plans to split into two publicly traded companies by spinning off NBCUniversal and Sky.

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The move will separate Comcast’s media and entertainment assets from its broadband and wireless business. The company’s stock surged more than 25% in pre-market trading following the announcement.

The newly spun-off NBCUniversal will include the company’s theme parks division, Universal film and television studios, NBC and Telemundo networks, Peacock, Bravo, and Sky — the British broadcaster bought in 2018.

Comcast meanwhile will continue with its “broadband, wireless and entertainment platforms.”

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

“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, the parent company of NBC News, said in a statement.

“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,” it said.

Mike Cavanagh, Comcast’s co-CEO, will run the new NBCUniversal. Comcast will be led by the returning Michael Angelakis, a former chief financial officer.

Comcast Chairman and co-CEO Brian Roberts will “continue to be actively involved in the leadership” of Comcast and NBCUniversal, “working in partnership with the CEOs of both companies,” the company said in the statement.

The move follows the spin-off of other cable networks previously owned by Comcast, including MSNBC (now MS Now) and CNBC, into a new separate company, Versant.