Shares of Comcast (CMCSA +0.25%) rose on Monday after the entertainment conglomerate announced plans to spin off its NBCUniversal media assets.
Image source: Getty Images.
Going their own way
Comcast intends to split into two separate companies.
One, which will be named NBCUniversal, will house its theme parks, film and television studios, Sky media business, NBC and cable networks, and the Peacock streaming service.
"Together, these businesses will be powered by a portfolio of world-class intellectual property, a deep content library, extraordinary content creation capabilities, and exceptional strength across sports, news, and entertainment," the company said in a press release.
NASDAQ: CMCSA
Key Data Points
The other, which will continue to operate under the name Comcast, will hold its wireless and broadband internet businesses.
"Comcast will focus on delivering exceptional customer experiences backed by the nation's largest converged network, reaching more than 65 million homes and businesses, its intelligent fiber network architecture, and global technology platforms," the company said.
The separation is projected to occur in roughly a year, subject to regulatory approval.
Could a merger be in store for NBCUniversal?
The split comes at a time when TV and cable-focused media companies are losing subscribers and advertising revenue to their streaming competitors. That's led to a wave of deal-making among traditional media businesses, as they race to gain scale and cut costs.
By separating it from its telecom operations, Comcast's spinoff could make NBCUniversal an appealing acquisition target for a larger entertainment giant.
