Comcast to Split Into Two Companies, Shares Rise 23%

Comcast announced on Monday it will split into two publicly traded companies, separating its connectivity operations from its media and entertainment assets. The announcement sent shares up as much as 23% in premarket trading.

The tax-free spin-off will create a company focused on cable, wireless and business services and a second company that will hold NBCUniversal, Sky, Universal theme parks, the firm’s film and TV studios, NBC and the Peacock streaming service. The transaction is expected to close in about a year.

Existing Comcast shareholders will receive shares in both companies when the deal closes. Comcast will retain a stake of up to 19.9% in the new NBCUniversal for up to one year and plans to monetise that holding gradually in a tax-efficient way.

Company leadership assignments were announced: Mike Cavanagh will become chief executive of the new NBCUniversal media and entertainment company, and Michael Angelakis, who previously served as Comcast’s chief financial officer, will return as chief executive of the connectivity-focused company.

In a statement, Brian L. Roberts, Comcast’s chairman and co-chief executive, called the day “very exciting” and wrote the transaction will “unlock a more entrepreneurial management approach and open up a multitude of new opportunities for each business.”

Comcast said the separation will allow each business to pursue independent strategies as technology and consumer habits change.

The announcement follows Comcast’s 2024 reorganization that moved several cable networks, including MSNBC, CNBC, USA and others, into a separate publicly traded company, Versant Media Group, which began trading in January. Comcast launched Peacock in 2020 to expand its streaming offerings.

Other major media companies have carried out mergers, sales and restructurings in recent years as the industry adapts to the shift toward streaming and away from traditional pay-TV models.