Comcast stock surges after it says it's spinning off its media businesses

Comcast's stock is surging after it announced that it's spinning off its media businesses.

Shares jumped more than 25% in premarket trading on Monday after Comcast said it plans to separate its wireless and broadband business from NBCUniversal and Sky (its UK media and connectivity arm). NBCU controls the NBC broadcast network, Peacock, the Bravo cable channel, and Universal Studios.

Comcast expects the tax-free spin-off, which would result in two publicly traded companies, to be completed within a year.

Comcast said the split is intended to give each company greater strategic focus by allowing both businesses to invest more effectively and pursue their own growth strategies.

"It has become clear that our technology and media businesses each have compelling opportunities in front of them that are distinct in nature and best pursued with dedicated focus, strategic flexibility, and tailored investment priorities," Comcast co-CEO Brian Roberts said on a conference call about the split.

Comcast's decision to spin off NBCU and Sky will allow both units to "move forward with greater focus, agility, and the ability to fully capitalize on the opportunities ahead," Roberts said.

Earlier this year, Comcast also officially completed the spin-off of the majority of its cable networks, including CNBC and MSNBC, into a separate company called Versant Media.

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When Comcast bought NBCU over 15 years ago, the cable business was the backbone of the company, Roberts said. The advent of cord-cutting flipped the script, and the cable business became a drag on the streaming business's growth.

"The media and telecom landscapes have become increasingly competitive, and that pace of change continues to accelerate," said Mike Cavanagh, Comcast's co-CEO, who will head up NBCU after the split. "And so we simply don't see these conditions changing anytime soon."

Wall Street had soured on Comcast as a connectivity and media conglomerate. Before the spinoff announcement, Comcast shares were down more than 30% in the past year and had fallen 60% from their all-time high in September 2021.

Some industry analysts have said Comcast needs to make a major deal to beef up its streaming business. Although Peacock has grown steadily, it's unprofitable and lacks scale because it operates only in the US.

Peacock is far smaller than its streaming rivals at 46 million subscribers, compared to over 325 million for Netflix (as of late 2025) and nearly 80 million for Paramount+.

Without a strategic partner, Peacock could struggle to compete against Netflix, Disney+ with Hulu, and a combined Paramount+ and HBO Max.

However, Roberts said this spinoff is "absolutely not" a prelude for a future transaction.

"This is the right move to put each company in the strongest position to create value, fully monetize its assets, and aggressively pursue its own organic growth strategies," Roberts said.

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