By Jessica Toonkel and Gareth Vipers

Comcast plans to separate its media and connectivity businesses, dismantling an earlier bet on combined entertainment and distribution as it navigates intensifying competitive pressure.

The cable and entertainment company, home to "Saturday Night Live," "Law & Order" and Bravo, aims to complete a tax-free spinoff of NBCUniversal and Sky, establishing a pure-play media company. The stand-alone NBCUniversal will be led by Mike Cavanagh, who is currently Comcast's co-chief executive, while former Chief Financial Officer Michael Angelakis will return to run Comcast.

Shares in the company, which were down roughly 30% over the past year, rose about 7% in morning trading.

The deal will transform a titan of the connectivity and entertainment industries that has used its scale as a flywheel for franchises like Minions, Fast & Furious and Wicked and to help fund new business ventures. The health and size of Comcast's core connectivity business allowed it to invest in major sports rights deals and build its streaming business, Peacock.

Now, company leaders believe the media and connectivity businesses should stand alone, providing more opportunity to pursue deals and better compete.

"We simply don't see these conditions changing anytime soon," Cavanagh told investors. "So where previously we believed that the scale and diversification benefits warranted operating these businesses as one company, we now have simply changed our mind about that."

Comcast's market cap was more than $82 billion before Monday's announcement. The company didn't share the expected market capitalization of the two new entities.

Comcast executives began discussing the split in recent weeks as it became clear greater flexibility would help the company navigate the increasingly challenging broadband and media markets, people familiar with the matter said.

The decision effectively draws to an end a bet on fusing media and entertainment with the connectivity pipes that distribute content. Other companies including Verizon Communications and AT&T have hived off or wound down media forays in recent years.

"No one knows what the future brings but we wanted to put our destiny in our hands," Comcast Chairman and co-CEO Brian Roberts said in an interview Monday morning.

The stand-alone NBCUniversal will include Universal's film and television studios, its growing theme parks division, the NBC and Telemundo networks, Bravo, Peacock, and the European media business, Sky.

The remaining Comcast business will consist of the company's broadband, wireless and cable television operations. Comcast has been working to stem broadband and cable TV subscriber losses, while expanding its Xfinity Mobile wireless business.

Broadband businesses have been challenged by cellphone carriers offering home internet service beamed over the air. Elon Musk's Starlink satellite connectivity company has added further competition for providers.

Charter Communications and Cox Communications are in the throes of a megamerger to defend their core broadband businesses. In April, Charter's stock fell more than 25% after it tempered its full-year revenue projection and reported subscriber declines in both its internet and video businesses.

In media and entertainment, Comcast and its rivals have had to invest heavily into their streaming services, but still need greater scale. Late last year, Comcast made a bid to buy assets from Warner Bros. Discovery, which ultimately went to Paramount.

The company spun off cable channels including MSNBC, CNBC, USA and Syfy into Versant earlier this year.

Comcast shareholders will own shares in both Comcast and NBCUniversal, the company said, with the separation expected to be completed within the next year.

The companies will have a dual-class structure and Comcast expects to keep a roughly 20% ownership stake in NBCUniversal for up to a year after the spin.

Roberts, 67, will continue to be involved in both businesses, the company said. It didn't specify his planned role.

The planned split represents a changing of the guard. Roberts, whose family is Comcast's controlling shareholder, has been CEO since 2002. Comcast elevated Cavanagh, 60, a former JPMorgan Chase executive, to co-CEO in 2026 as part of its succession-planning process.

Angelakis, 62, who served as CFO of Comcast from 2007 to 2015, was heavily involved in its purchase of NBCUniversal. Comcast bought a 51% stake in NBCUniversal from General Electric in 2011, and the remaining 49% in 2013.

Comcast told employees Monday that the deal marked "a new beginning."

Write to Jessica Toonkel at [email protected] and Gareth Vipers at [email protected]