Comcast NASDAQ:CMCSA shares surged more than 20% in premarket trading after the company announced plans to separate NBCUniversal and Sky into a new publicly traded company, a move that could help investors reassess the value of its media assets and core connectivity business.
The new NBCUniversal will include theme parks, Universal film and television studios, NBC, Telemundo, Peacock, Bravo, and Sky, while the remaining Comcast will keep its broadband, wireless, and cable-TV operations. Comcast shareholders are expected to own stakes in both companies, with the separation planned within a year and still subject to board and regulatory approvals.
Mike Cavanagh, currently Comcast's co-CEO, will become CEO of NBCUniversal, while former CFO Michael Angelakis will lead Comcast. The decision comes as Comcast shares had fallen 22% this year through June 26, pressured by cord-cutting and tougher broadband competition from AT&T NYSE:T and Verizon Communications NYSE:VZ, making the split a potential reset point for investor sentiment.