Comcast shares jump 10% on plan to split media and tech units

Comcast Corp. will separate its media and technology businesses into two publicly traded companies, a breakup that sent shares up as much as 10% in pre-market trading and unlocks a path for investors to value the NBCUniversal assets independently from the connectivity giant.

Comcast (Nasdaq: CMCSA) plans to spin off NBCUniversal and Sky to shareholders in a tax-free transaction expected to close in approximately one year, the Philadelphia-based company said Monday. The separation creates two focused industry leaders — one anchored by broadband, wireless and the nation's largest converged network reaching more than 65 million homes and businesses, the other by Universal theme parks, film and television studios, Peacock streaming and European media assets.

"This is a very exciting day for our company," said Brian L. Roberts, chairman and co-chief executive officer of Comcast. "The transaction we are announcing will unlock a more entrepreneurial management approach and open up a multitude of new opportunities for each business."

The deal structure gives Comcast shareholders stock in both entities. Comcast will retain up to a 19.9% stake in NBCUniversal for as long as one year after the spin-off closes, which it plans to monetize in a tax-efficient manner. NBCUniversal will maintain the same dual-class share structure as Comcast. Both companies are expected to carry investment-grade balance sheets, providing financial flexibility for各自的 growth strategies.

Mike Cavanagh, currently co-CEO of Comcast, will become chief executive officer of NBCUniversal. Michael Angelakis, Comcast's former chief financial officer, will return as CEO of Comcast, joining initially as a strategic advisor until the separation completes. Roberts will remain actively involved in leadership at both companies, working alongside both CEOs.

The breakup reflects a broader trend of conglomerates shedding media assets as streaming competition intensifies and traditional television audiences decline. By separating the capital-intensive connectivity business from the content-driven media operation, Comcast allows each to pursue distinct strategic priorities — the technology side investing in network infrastructure and wireless growth, the media side pursuing content deals and partnerships across the entertainment ecosystem.

Goldman Sachs & Co. LLC and PJT Partners served as financial advisors to Comcast, with Davis Polk & Wardwell LLP providing legal counsel.

The separation is subject to final board approval, tax opinions, regulatory clearances and financing arrangements. Comcast expects to complete the transaction within about one year.

This article is for informational purposes only and does not constitute investment advice.