Comcast is splitting into two companies, with NBCUniversal set to separate

In a media environment that has witnessed a boom in mergers and acquisitions, Comcast It plans to split into two companies. the The company announced On Monday it plans to separate its media and entertainment brand from its communications business. NBCUniversal and Sky will separate as a separate, independent entity. The separation is a tax-free transaction that will give Comcast shareholders ownership of shares in both companies, and is expected to be completed within a year.

“This is a very exciting day for our company,” Brian L. Roberts, chairman and co-CEO of Comcast, said in a statement. “The transaction we are announcing will unlock a more entrepreneurial approach to project management and open many new opportunities for each company. I very much look forward to helping guide our collective growth for this next chapter.”

The company cited competition and “rapidly changing markets” as reasons for the change, and aims to improve its focus with the split. Comcast pointed to its position in the technology sector serving broadband, wireless and cable customers, and highlighted NBCUni’s foothold in streaming, theme parks, film and television. The announcement comes on the heels of news that Comcast-owned Sky has committed to $2 billion deal to buy streaming and streaming arms From the UK free-to-air television network ITV.

Sky, a UK-based pay TV broadcaster, offers film and television content, streaming platforms, smart TVs, mobile and internet connectivity. Its programming includes live sports, Sky News and original shows such as The Day of the Jackal (which airs on Peacock in the US).

Sky will be under the NBCUniversal umbrella with Mike Kavanaugh taking over as CEO of the venture, while Michael Angelakis will take over as the new CEO of Comcast.

This new split could enable each company to have unique partnership and licensing opportunities in the media space, potentially expanding the software, subscriptions or packages offered to customers. Previously, Comcast spun off some of its NBCUniversal-owned properties into Versant, a separate company that includes ownership of USA Network and E! CNBC, Rotten Tomatoes, Fandango, GolfPass and more.