Comcast Corp. plans to spin off NBCUniversal and Sky, unwinding acquisitions it made more than a decade ago after struggling to demonstrate a cable and media conglomerate would benefit shareholders.

Ralph Roberts founded Comcast with the purchase of a single 1,200-subscriber cable system in Tupelo, Mississippi, in 1963. His son Brian Roberts, now 67, helped build the business into one of the largest media companies in the world through a string of acquisitions. But the Philadelphia-based company has struggled recently with consumers shifting to streaming TV and cancelling cable-TV subscriptions.

“This is not about separating what we built together,” Roberts said on a call with analysts. “It’s about positioning two exceptional businesses to move forward with greater focus, agility, and the ability to fully capitalize on the opportunities ahead.”

The deal will spin off NBCUniversal and Sky into a new publicly traded company, distinct from the cable-TV business of Comcast, allowing each to focus on separate strategic priorities and address competitive pressures and challenges. NBCUniversal will hold the theme parks division, Universal film and television studios, the NBC and Telemundo broadcast networks, Peacock streaming service, and Bravo cable channel as well as the European media business, Sky. Comcast will hold the company’s remaining broadband, wireless and cable-TV business.

Comcast shares rose as much as 17 per cent as trading got underway Monday in New York, the biggest intraday gain since 2008, before settling up about 10 per cent at 9:55 a.m. They have declined 15 per cent this year, underperforming the eight per cent gain in the S&P 500 Index.

The deal, which came as a surprise to many investors, nevertheless reflects a trend as the media industry grapples with declining cable viewership. Comcast spun off its cable-TV networks, including MS NOW and CNBC, into a new company, Versant Media Group Inc., at the start of this year. Shares in that company dipped initially and have largely traded sideways since, reflecting the ongoing drag on cable viewers and advertising.

Separating the two businesses is “the only way to unlock value,” Vikash Harlalka, an analyst at New Street Research, said. The move is a precursor for allowing Comcast to focus on mergers and acquisitions in both the cable and media sectors once the separation is complete, he said.

Mike Cavanagh, currently the co-chief executive officer at Comcast, will become chief executive of NBCUniversal, home of beloved movies and TV shows from Saturday Night Live to The Office and Jurassic Park. Comcast’s former chief financial officer, Michael Angelakis, will return to the company as chief executive.

Comcast shareholders will have stakes in both companies, according to a statement on Monday. The company will keep a stake of up to 19.9 per cent in NBCUniversal for as much as 12 months after the spinoff is complete, which is expected to take place in a year and requires board and regulatory approvals.

NBCUniversal will have the same dual-class share structure as Comcast, giving the Roberts family an out-sized say in management of both businesses. Roberts, the chairman, will “continue to be actively involved in the leadership” of both companies, Comcast said.

Comcast took control of NBCUniversal from General Electric in 2011 and two years later bought the rest of the company for US$16.7 billion, including film studios and offices at the famous 30 Rockefeller Plaza in New York.

Recently, newly energized telecom companies such as AT&T Inc. and Verizon Communications Inc. have been winning more broadband customers by offering high-speed internet service through wireless and fiber-optic lines.

Comcast put in an offer for rival media company Warner Bros. Discovery Inc. last year in an attempt to bulk up, but Roberts has largely been in deconstructing mode recently.

Comcast has tried to emphasize what it has called its remaining growth businesses, including theme parks and wireless phone service, but the company’s shares had still fallen 22% this year through the close on June 26.

“There’s no surprise that both the media and telecom landscapes have become increasingly competitive, and that pace of change continues to accelerate,” Cavanagh said on an analyst call. “We previously believed that scale and the diversification benefits warranted operating these businesses as one company. We’ve now simply changed our mind about that. We’ve now concluded that future success for each of our businesses will depend on focus, speed, and strategic flexibility.”

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Cavanagh, a 60-year-old former investment banker, has been running Comcast as co-CEO since January. Angelakis, 62, stepped down from an executive role at Comcast to found the investment fund Atairos Group in 2015. He has continued to serve as an adviser to the company.