Comcast said it plans to separate its media businesses from its mobile and broadband networks in the latest reshaping of the US industry, sending shares in the group up more than 20 percent on Monday.
The US media group said it expected to complete the break-up within a year through a tax-free spin-off of NBCUniversal and Sky —handing existing shareholders stock in both Comcast and the new standalone media company.
The move comes as the traditional American media industry races to keep pace as audiences shift their attention to social media and streaming platforms.
Paramount Skydance is expected to seal a $111 billion deal to acquire Warner Bros Discovery later this summer, marrying two studios with roots in the silent film era.
Before the announcement, Comcast’s share price had fallen about 30 percent over the past year, pushing its market capitalization toward a 10-year low of $82.7 billion. New threats have also emerged to Comcast’s Internet connectivity business from competitors such as Elon Musk’s SpaceX.
Comcast shares rose more than 20 percent in pre-market trading after the announcement.
In January, Comcast spun off its cable television businesses, which include channels such as CNBC and the USA Network, as a separate group called Versant.
The latest split will create a media giant with operations spanning Universal Studios, the Peacock streaming platform, and Sky outside the US. NBCUniversal owns media assets such as NBC, Telemundo, and DreamWorks as well as theme parks and resorts.
<small>Source: Ars Technica</small>
