Comcast To Spin Off NBCUniversal And Sky, Separating Media Business From Broadband Operations

Comcast announced Monday that it will separate its media and entertainment operations into a standalone publicly traded company, splitting NBCUniversal and Sky from its broadband and wireless business in one of the biggest corporate restructurings in the media sector in recent years.

The announcement comes as the global media industry continues to adapt to sweeping changes in consumer viewing habits, increased competition from streaming platforms and a wave of corporate consolidation.

The new company will include Universal Pictures, the NBC and Telemundo broadcast networks, NBC News, Peacock, Bravo, Universal’s theme parks business and European broadcaster Sky, which Comcast acquired in 2018. Comcast, meanwhile, will continue operating its broadband, wireless and business connectivity services.

The separation is expected to be completed in about a year, subject to customary approvals. Comcast said existing shareholders will own shares in both companies, while Comcast plans to retain a stake of up to 19.9% in NBCUniversal for as much as one year after the transaction is completed, the company said in a statement and NBC News reported.

Comcast’s board said the split would create “two focused industry leaders” with separate strategic priorities and financial profiles. The company said each business would be better positioned to pursue growth opportunities independently, according to the company statement, as reported by NBC News.

Mike Cavanagh, Comcast’s current co-chief executive officer, will become CEO of the new NBCUniversal. Former Comcast chief financial officer Michael Angelakis will return to lead Comcast, while Chairman and co-CEO Brian Roberts will continue to play leadership roles at both companies, Comcast said, according to Reuters.

The announcement was well received by investors. Comcast shares climbed more than 20% in premarket trading after the company disclosed the restructuring plan, reflecting investor optimism over separating its media assets from its communications business.

The move follows Comcast’s earlier restructuring announced in November 2024, when it spun off several cable television networks, including CNBC and MSNBC, now known as MS NOW, into a separate publicly traded company called Versant. Monday’s announcement marks a further step in Comcast’s effort to separate its traditional media businesses from its core connectivity operations, according to Associated Press.

The entertainment industry is facing a period of significant change as legacy media companies contend with declining linear television audiences and continued competition from streaming services. Several major companies have pursued mergers, divestitures and asset sales as they reposition their businesses.

Earlier this month, the U.S. Justice Department approved Paramount Skydance’s $110 billion acquisition of Warner Bros. Discovery, although attorneys general in California and New York continue to review the transaction on antitrust grounds, according to CBC News.

Comcast acquired NBCUniversal in stages beginning in 2011 before taking full ownership in 2013. The company later expanded its international media presence with its acquisition of Sky in 2018. The planned separation effectively unwinds the combination of media and distribution businesses that Comcast spent more than a decade building.

The company said Comcast will continue focusing on broadband, wireless and business services, while the new NBCUniversal will operate as an independent global media and entertainment company with its portfolio of television networks, film studios, streaming operations, theme parks and international television assets.