What happened: Comcast (CMCSA) stock jumped 23% in pre-market trading on Monday.

What’s behind the move: Comcast announced Monday that it intends to divide its operations into two standalone public companies, separating its media assets from its technology and connectivity businesses.

The transaction will be completed through a tax-free spin-off of NBCUniversal and Sky.

“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 Mike Cavanagh, co-CEO of Comcast in the company’s announcement.

What else you need to know: Comcast expects the separation to take approximately one year to finalize. Once complete, current Comcast shareholders will receive ownership stakes in both Comcast and the newly independent NBCUniversal.

The announcement comes after a challenging year for Comcast’s stock, which has fallen about 30% over the past 12 months, and 17% year-to-date. The stock decline reflects ongoing headwinds for the media industry as viewers continue their shift away from traditional cable television in favor of streaming platforms.

As part of the leadership changes, chairman and co-CEO Brian Roberts will continue providing leadership and oversight for both companies.

Cavanagh will become CEO of NBCUniversal, while former Comcast CFO Michael Angelakis will take over as CEO of Comcast.

Ines Ferre is a senior business reporter for Yahoo Finance. Follow her on X at @ines_ferre.

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