Comcast's media and entertainment business, which consists of Sky and NBC Universal, will be spun off into its own publicly traded company under the name NBC Universal.
The technology and telecom operations will remain at Comcast.
The spin-off is expected to be completed within a year, and existing shareholders will own shares in both Comcast and NBC Universal.
"Comcast will build on its leadership position in connectivity, while NBC Universal, together with Sky, will have the brands and financial resources necessary to compete as a global media and entertainment company," said CEO Mike Cavanagh in a statement.
Comcast's stock is up more than 20 percent in pre-market trading on Wall Street.
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