Comcast said Monday it plans to separate its media and technology businesses into two publicly traded companies as it looks to better compete in a media landscape increasingly characterized by pressure from streaming rivals and consolidation. The separation, which will happen via a tax-free spinoff of NBCUniversal and Sky, is expected to be completed in about one year, and Comcast shareholders will own shares in both Comcast and NBCUniversal, the company said in a statement. Comcast shares jumped as much as 26% in premarket trading, before paring some gains to trade about 23% higher. Comcast co-CEO Mike Cavanagh will become CEO of NBCUniversal, while Comcast's former Chief Financial Officer Michael Angelakis will become CEO of Comcast. Comcast's other co-CEO and chair, Brian L. Roberts, will continue to be actively involved in the leadership of both Comcast and NBCUniversal. The media arm will incorporate the theme parks division, Universal film and television studios, NBC and Telemundo networks, Peacock, Bravo, and the European media business Sky. The remaining Comcast company will focus on its cable, wireless and business services arm. "The transaction we are announcing will unlock a more entrepreneurial management approach and open up a multitude of new opportunities for each business," Roberts said. "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. Comcast said it expects to retain a stake of up to 19.9% ownership position in NBCUniversal for up to one year after the transaction is completed, which it intends to tax-efficiently monetize over time. The transaction will require board and regulatory approvals. It comes as Comcast's share price has plummeted 30% over the past 12 months amid significant challenges facing the media industry that are driven by the shift away from the TV bundle and toward streaming. Comcast shares over the past year. Earlier this year, it completed the spinoff of its portfolio of cable TV networks and digital assets, which includes CNBC and MS Now, to the separate public company Versant Media . The media sector has seen a wave of consolidation recently, as legacy players strive for scale, with few companies going public amid the challenging environment. Paramount Skydance completed its merger last year, and earlier this month, it won DOJ approval for a $110 billion deal for Warner Bros. Discovery . Meanwhile, Fox entered an agreement to acquire Roku for $22 billion earlier this month. CNBC's Lillian Rizzo contributed to this report Disclosure: Versant is the parent company of CNBC.
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