Comcast is planning to split itself into two separate publicly traded companies by spinning off NBCUniversal and Sky.
The company said Monday that its board and management team think each company will be better positioned to pursue its own strategic priorities, invest for growth and create long-term shareholder value as independent entities.
Media and entertainment company NBCUniversal includes a theme parks division, Universal film and television studios, NBC and Telemundo networks, Peacock, and Bravo. Its portfolio will now European media business Sky.
Comcast, based in Philadelphia, will continue providing internet services to residential and business customers.
Once the transaction is complete, Comcast shareholders will own shares in both Comcast and NBCUniversal. The separation is expected to be completed in about a year. It still needs final approval from Comcast’s board and is subject to regulatory approvals.
Comcast expects to keep a stake of up to 19.9% ownership position in NBCUniversal for up to one year after the spinoff is complete.
In premarket trading, Comcast shares surged 24%.