Comcast soars 20% after announcing it will spin off NBCUniversal and Sky from cable business

Comcast said Monday it plans to separate its media and technology businesses into two publicly traded companies as it looks to better compete in a media landscape increasingly characterized by ‌pressure from streaming rivals and consolidation.

The separation, which will happen via a tax-free spinoff of NBCUniversal and Sky, is expected to be completed in about a year, the company said in a statement. Comcast shareholders will own shares in both Comcast and NBCUniversal, it said.

"As we look ahead, it has become clear that our technology and media businesses each have compelling opportunities in front of them that are distinct in nature and best pursued with dedicated focus, strategic flexibility, and tailored investment priorities," said co-CEO and chair Brian Roberts on a call with investors Monday.

"That is why today we announced an important next step in Comcast's evolution. Our plan to create two separate companies, Comcast and NBCUniversal."

Comcast shares jumped as much as 26% in premarket trading, before paring some gains to trade about 23% higher.

Comcast co-CEO Mike Cavanagh will become CEO of NBCUniversal, while Comcast's former Chief Financial Officer Michael Angelakis will become CEO of Comcast.

Roberts will continue to be "actively involved" in the leadership of both Comcast and NBCUniversal, the company said. On Monday, Roberts added he would work closely with both Cavanagh and Angelakis "as each company moves into this exciting new chapter."

The media arm will include the company's Universal theme parks division, Universal film and television studios, NBC and Telemundo TV networks, Peacock streaming service, Bravo and the European media business Sky.

The remaining Comcast company will focus on its cable, wireless and business services arm.

The split comes as Comcast's share price has plummeted 30% over the past 12 months amid significant challenges facing the media industry, driven by the shift away from the TV bundle and toward streaming.

Comcast shares over the past year.

Earlier this year, Comcast completed the spinoff of its portfolio of cable TV networks and digital assets, which includes CNBC and MS Now, to the separate public company Versant Media.

The media sector has seen a wave of consolidation recently, as legacy players strive for scale, with few companies going public amid the challenging environment.

"There's no surprise that both the media and telecom landscapes have become increasingly competitive and that pace of change continues to accelerate. We simply don't see these conditions changing anytime soon," Cavanagh said on Monday's call.

Paramount Skydance completed its merger last year, and earlier this month, it won DOJ approval for a $110 billion deal for Warner Bros. Discovery. Meanwhile, Fox entered an agreement to acquire Roku for $22 billion earlier this month.

During the process of the Comcast's latest split, the company said it will pause share repurchases. Cavanagh said the company will provide more details on its dividend policy for each company before the completion of the separation.

"There are important details to finalize and we will provide those updates as we move forward," he added.

Comcast said it expects to retain a stake of up to 19.9% ownership position in NBCUniversal for up to one year after the transaction is completed, which it intends to tax-efficiently monetize over time. The transaction will require board and regulatory approvals.

Disclosure: Versant is the parent company of CNBC.