Comcast Corporation plans to separate off its media and technology businesses into two separate publicly traded companies, the company announced on Monday.
Following the news, the company's shares surged more than 20% in pre-market trading.
The company intends to spin off NBCUniversal and Sky into a standalone media and entertainment company.
Comcast will concentrate on broadband, wireless, and business services, while NBCUniversal will house the company's media and entertainment assets, including NBC, Telemundo, Peacock, Bravo, Universal Studios, theme parks, and Sky.
Comcast said its chairman and co-chief executive officer Brian L Roberts will remain actively involved in both companies.
Mike Cavanagh, currently Comcast's co-chief executive officer, will become chief executive officer of NBCUniversal, while former Comcast chief financial officer Michael Angelakis will return to lead Comcast as chief executive officer following the completion of the separation, the company said.
Under the proposed transaction, Comcast shareholders will own shares in both Comcast and the new NBCUniversal after the separation, which is expected to be completed in about one year.
Following the spin-off, Comcast plans to retain up to a 19.9% stake in NBCUniversal for up to one year and intends to monetize that holding over time in a tax-efficient manner.
"Both companies begin this next chapter from positions of strength. 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," said Cavanagh.
Comcast shares closed at $23.17 on Friday, up 2.21%.
