Comcast is splitting its media and broadband properties

Comcast said it plans to separate its media businesses from its mobile and broadband networks in the latest reshaping of the US industry, sending shares in the group up more than 20 percent on Monday.

The US media group said it expected to complete the break-up within a year through a tax-free spin-off of NBCUniversal and Sky —handing existing shareholders stock in both Comcast and the new standalone media company.

The move comes as the traditional American media industry races to keep pace as audiences shift their attention to social media and streaming platforms.

Paramount Skydance is expected to seal a $111 billion deal to acquire Warner Bros Discovery later this summer, marrying two studios with roots in the silent film era.

Before the announcement, Comcast’s share price had fallen about 30 percent over the past year, pushing its market capitalization toward a 10-year low of $82.7 billion. New threats have also emerged to Comcast’s Internet connectivity business from competitors such as Elon Musk’s SpaceX.

Comcast shares rose more than 20 percent in pre-market trading after the announcement.

In January, Comcast spun off its cable television businesses, which include channels such as CNBC and the USA Network, as a separate group called Versant.

The latest split will create a media giant with operations spanning Universal Studios, the Peacock streaming platform, and Sky outside the US. NBCUniversal owns media assets such as NBC, Telemundo, and DreamWorks as well as theme parks and resorts.

Comcast will be left with a broadband and wireless network business reaching 65 million customers across the US.

The move is intended to simplify and improve the business’s appeal to investors, according to people close to the move. Some investors favor the steadier broadband business while others want access to a “pure play” media group.

The split will also make future partnerships and dealmaking simpler for the two standalone companies, the person said. Last year, Comcast was among the suitors to buy WBD in an acquisition battle that was eventually won by Paramount Skydance.

Comcast said it would establish a strong investment-grade balance sheet for each company, providing both with “significant financial flexibility to pursue their respective growth strategies.”

The company is expected to announce a deal to acquire ITV’s broadcasting business in the next few weeks for about £1.6 billion, according to multiple people familiar with the situation, which will bolster the UK media operations ahead of the split.

Comcast expects to retain a stake of up to 19.9 percent in NBCUniversal for up to one year after the completion of the spin-off, which it intends to sell in a tax-efficient manner over time.

Brian Roberts, Comcast’s chair and chief executive, will continue to be “actively involved” in leading both companies following a reshuffle in the management team, Comcast said. Mike Cavanagh, Comcast’s co-chief executive, will become CEO of NBCUniversal, while Comcast’s former finance chief Michael Angelakis will lead Comcast.