June 29 (Reuters) – Comcast said it plans to split into two publicly traded companies through a tax-free spinoff of NBCUniversal and Sky, separating its broadband and wireless business from its media and entertainment assets.
Shares of Comcast rose more than 9% in premarket trading on Monday.
The split, expected to be completed in about a year, will create one company anchored by Comcast’s cable, wireless and business services arm and another built around Universal theme parks, film and TV studios, NBC, Peacock and the European media business Sky.
Legacy media companies have been considering options to adapt to shifts in consumer behavior and a fast-changing competitive landscape driven by streaming.
Comcast shareholders will own stock in both companies after the deal closes.
Comcast will keep a stake of up to 19.9% in NBCUniversal for up to a year following the spinoff, which it plans to monetize over time in a tax-efficient manner, the company said.
(Reporting by Anhata Rooprai in Bengaluru; Editing by Pooja Desai)
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