Comcast (CMCSA) stock jumped as much as 3.5% in premarket trade on Wednesday after the company confirmed plans to spin off most of its cable networks into a new, publicly-traded company.

The yet-to-be-named SpinCo will house most of NBCUniversal’s cable television networks, including USA Network, CNBC, MSNBC, Oxygen, E!, SYFY, and Golf Channel. Those networks collectively generated approximately $7 billion in revenue over the past 12 months, Comcast said in its announcement.

Comcast’s Peacock streaming service and the NBC broadcast network will remain under the parent company.

“This transaction positions both SpinCo and NBCUniversal to play offense in a changing media landscape,” said Comcast President Mike Cavanagh.

Comcast said it is looking to complete the spin-off in one year. Goldman Sachs and Morgan Stanley are advising the company on the transaction.

NBCUniversal Media Group chairman Mark Lazarus will assume the role of CEO of SpinCo. Anand Kini, the Chief Financial Officer of NBCUniversal, will now serve as SpinCo’s CFO.

“As a standalone company with these outstanding assets, we will be better positioned to serve our audiences and drive shareholder returns in this incredibly dynamic media environment across news, sports and entertainment,” said Lazarus. “We see a real opportunity to invest and build additional scale and I’m excited about the growth opportunities this transition will unlock.”

“Our financial strength will also provide capacity for an attractive capital return policy while allowing for investment in the growth of these businesses.”

Comcast said in late October that it had begun to explore spinning off its cable TV networks into a separate business, sending the stock up more than 3% the same day, Yahoo Finance’s Alexandra Canal reported at the time.

Ross Benes, principal analyst at eMarketer, said in October that a spin-off would make sense for the company, which has been laser-focused on beefing up its broadband capabilities and its streaming business amid a struggling cable TV industry.

“Spinning cable networks into their own company will make it easier for Comcast to cleave off its TV properties and sell them,” Benes wrote in October. “Comcast profits are driven by its internet service provider (ISP) side. Other [multichannel video programming distributors] have pulled back their TV ambitions, and it would make sense for Comcast to do the same.”

“Dividing the TV networks from the rest of the company will allow Comcast to more clearly show growth in its ISP business,” the analyst added. “A write down on the TV networks would not be surprising.”

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