Comcast stock surges as cable giant announces company split

What happened: Comcast (CMCSA) banal jumped 23% successful pre-market trading connected Monday.

What's down the move: Comcast announced Monday that it intends to disagreement its operations into 2 standalone nationalist companies, separating its media assets from its exertion and connectivity businesses.

The transaction volition beryllium completed done a tax-free spin-off of NBCUniversal and Sky.

"Comcast volition proceed to physique connected its enactment successful connectivity, portion NBCUniversal, unneurotic with Sky, volition person the scale, brands, contented and fiscal resources to vie arsenic a premier planetary media and amusement company," said Mike Cavanagh, co-CEO of Comcast successful the company's announcement.

What other you request to know: Comcast expects the separation to instrumentality astir 1 twelvemonth to finalize. Once complete, existent Comcast shareholders volition person ownership stakes successful some Comcast and the recently autarkic NBCUniversal.

The announcement comes aft a challenging twelvemonth for Comcast's stock, which has fallen astir 30% implicit the past 12 months, and 17% year-to-date. The banal diminution reflects ongoing headwinds for the media manufacture arsenic viewers proceed their displacement distant from accepted cablegram tv successful favour of streaming platforms.

As portion of the enactment changes, president and co-CEO Brian Roberts volition proceed providing enactment and oversight for some companies.

Cavanagh volition go CEO of NBCUniversal, portion erstwhile Comcast CFO Michael Angelakis volition instrumentality implicit arsenic CEO of Comcast.

Ines Ferre is simply a elder concern newsman for Yahoo Finance. Follow her connected X astatine @ines_ferre.

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