Comcast splits media and tech into two public companies

Comcast will separate NBCUniversal into an independent publicly traded company, ending a 15-year partnership that combined its media and broadband businesses.

The tax-free spinoff, expected to close within a year, follows Comcast’s recent cable channel spinoff and echoes similar media divestitures by Verizon and AT&T.

The new NBCUniversal will include the NBC broadcast network, Universal Pictures, Universal Studios theme parks, Sky, and popular shows and franchises such as Saturday Night Live, The Office, and Jurassic Park.

Comcast will keep a 19.9% stake in NBCUniversal for up to one year.

Investors welcomed the announcement, sending Comcast shares up more than 7% and Charter’s stock up 11%.

Analysts say the split gives both companies greater flexibility to grow, while the announcement also fueled speculation about future mergers, particularly with Charter Communications, as Comcast sharpens its focus on broadband and wireless services. It is facing increasing competition from internet providers, including SpaceX’s Starlink.

Some speculate that the move could make NBCUniversal a more attractive acquisition candidate for companies like Netflix and Apple, following its unsuccessful attempt to merge it with Warner Bros. Discovery.