By Adam Clark
Comcast said Monday that it plans to split into two companies, one focused on technology and the other on media, by spinning off NBCUniversal and Sky.
Comcast plans a tax-free spinoff of the NBCUniversal and Sky business to its shareholders in around a year's time. Comcast expects to retain a stake of up to 19.9% in the resulting NBCUniversal company for up to one year after the completion of the split.
The stock soared 23% in the premarket session. If that move holds, shares will notch their largest daily percentage gain since Oct. 28, 2008, according to Dow Jones Market Data.
Michael Angelakis, who has formerly served as Comcast's chief financial officer, will become the CEO of a Comcast business focused on its broadband, wireless and remaining entertainment operations.
Mike Cavanagh, currently co-CEO of Comcast, will head the new NBCUniversal company. His fellow co-CEO Brian Roberts will continue to be involved with both companies.
"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," Cavanagh said in a statement.
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