Read the memo Comcast sent employees about its plans to spin off its media business

Comcast co-CEO Brian L. Roberts said the split would open up opportunities for both companies.

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• Comcast announced plans to split its media and tech businesses into separate companies.
• In a memo shared with its employees, the company spoke of both units' "great business prospects."
• Read the memo Comcast's co-CEOs shared with employees.

Comcast just announced plans to spin off its media and entertainment units from its broadband and wireless business.

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Shares jumped more than 25% in premarket trading on Monday after the announcement.

In a memo shared with its employees, the company spoke of both units' "great business prospects" and "strong balance sheets." Its co-CEOs also outlined the planned leadership structure.

The spun-off media and entertainment company, which will be called NBCUniversal, will be led by current Comcast co-CEO Mike Cavanagh, while Comcast, which will house the broadband and wireless sides, will be run by Michael Angelakis. Comcast co-CEO Roberts said he'd remain involved with both businesses.

Comcast's stock has declined in recent years as it has shed broadband subscribers and racked up streaming losses. Wall Street has not bought the narrative that media and cable distribution are a winning combination.

During a call with analysts, Roberts laid out a rosier view of the logic for the split. He said that since Comcast acquired NBCU more than 15 years ago, both businesses have become able to compete independently. NBCU is a diversified global entertainment company spanning news, studio, theme parks, and streaming business in Peacock. Meanwhile, Comcast's tech business had grown into a leading broadband provider.

"They have the right assets, you've heard about the leadership and strategic focus, and the financial strength that we hope to have to succeed as stand-alone companies," Roberts said.

Comcast execs stressed the split move was not a step toward an eventual sale.

"The plan for NBCUniversal and Sky is to invest for growth," Cavanagh said on the analyst call.

This is Comcast's second big move to separate some of its media assets.

It already spun off most of its cable channels, including MSNBC, CNBC, and the Golf Channel.

Other media giants have wrestled with what to do about their traditional TV channels, which have been part of a declining sector as people cut the cord and migrate to streaming services. Warner Bros. Discovery planned to spin off its TV networks, like CNN and TNT, into a separate company before Paramount moved to acquire the whole company. And Disney has mulled selling off TV and cable channels.

Here's the memo Roberts and Cavanagh shared with employees:

Today marks a new beginning for Comcast, NBCUniversal and Sky.As you will see in the press release, we are planning to separate into two wonderful companies, each with great business prospects, strong balance sheets and terrific leadership.For more than sixty years, our company has grown by embracing change and investing for the future. Today is another one of those moments.What started with 1,200 customers in Tupelo, Mississippi has grown into one of the world's leading media and technology companies. Along the way, we built one of the nation's largest connectivity businesses, expanded into wireless and business services, and invested in NBCUniversal and Sky's media and entertainment businesses to fuel extraordinary brands, creative talent, sports, news, streaming, studios and theme parks.At Comcast, our former CFO Michael Angelakis will be rejoining the company to become CEO upon closing and will begin immediately as a strategic advisor. Michael will work closely with Steve Croney, Jason Armstrong and the rest of our management team to continue the momentum we have.Mike Cavanagh will become CEO for NBCUniversal, which will also include Sky. Mike has assembled an outstanding leadership team and helped drive success across every part of the business.Brian will remain actively involved with both companies, working closely with Mike and Michael where he will focus on the new areas of growth, creativity and opportunity that this new structure will create.We wanted you to hear this news first and invite you to join us for an employee Town Hall available on the intranet today at 1:00 p.m. ET.Thank you for everything you do for our company. We couldn't be more excited about what comes next.Brian L. RobertsChairman and Co-CEOComcast CorporationMike CavanaghCo-CEOComcast Corporation

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