Comcast Stock Heads For Best Day In More Than A Decade — What’s Fueling The Surge?

Comcast stated in its announcement that it intends to split into two independent publicly traded companies.

• Comcast announced that, post-split, existing shareholders of the company will get shares in both Comcast and NBCUniversal.
• The company expects the tax-free spinoff of the two businesses to complete in about one year, subject to regulatory approvals and other customary closing conditions.
• Comcast also said it expects to retain a stake of up to 19.9% in NBCUniversal for up to one year after the spin-off, with plans to monetize that position over time in a tax-efficient manner.

Shares of Comcast Corp. (CMCSA) are on track for their best single-day gains in more than 11 years after the company announced plans to split its media and technology businesses into two separate companies.

Comcast stated in its announcement that it intends to split into two independent publicly traded companies.

“Comcast will continue to build on its leadership in connectivity, while NBCUniversal, together with Sky, will have the scale, brands, content and financial resources to compete as a premier global media and entertainment company,” said Comcast co-CEO Mike Cavanagh.

Comcast shares were up more than 25% in Monday’s pre-market trade. CMCSA was among the top trending tickers on Stocktwits at the time of writing.

What CMCSA Shareholders Will Get

Comcast announced that post the split, existing shareholders of the company will get shares in both Comcast and NBCUniversal.

The company expects the tax-free spinoff of the two businesses to complete in about one year, subject to regulatory approvals and other customary closing conditions.

Comcast also said it expects to retain a stake of up to 19.9% in NBCUniversal for up to one year after the spin-off, with plans to monetize that position over time in a tax-efficient manner.

Why CMCSA Plans To Split Into Two Companies

Comcast said the separation is intended to create two focused public companies as technological innovation, changing consumer behavior and competitive dynamics continue to reshape the media and communications industries.

The company said each business would be better positioned to pursue its own strategic priorities, invest for growth and create long-term shareholder value as an independent company.

The post-separation Comcast will focus on its broadband, wireless and technology businesses, while NBCUniversal will house the company's media and entertainment assets, including Universal theme parks, film and television studios, NBC and Telemundo, Peacock, Bravo and European media business Sky.

Cavanagh will become CEO of NBCUniversal, while former Comcast CFO Michael Angelakis will return as CEO of Comcast. Chairman Brian Roberts will remain actively involved with both companies.

What Retail Investors Think Of CMCSA Stock

Retail sentiment on Stocktwits around Comcast trended in the ‘bullish’ territory at the time of writing.

CMCSA stock is down 17% year-to-date and 30% over the past 12 months. The S&P 500 ETF (SPY) is up 19% over the past 12 months, while the Invesco QQQ Trust (QQQ) is up 29%.

The Vanguard Total Stock Market Index Fund ETF (VTI) is up 20%, while the Vanguard S&P 500 ETF (VOO) is up 19%.

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