Comcast spinoff Versant (VSNT) starts trading on Nasdaq

Versant Media Group, portfolio of cable TV networks and digital assets created by comcastIt joined the small group of public media companies on Monday as the industry reckons with ongoing disruptions.

Versant began trading on Nasdaq under the symbol “VSNT” at $45.17 per share.

The company’s issuance shares, a security that is expected to be issued and conditionally authorized to trade to give investors a chance to buy shares early, first began trading at $55 per share on Dec. 15 and began trading at $46.65 per share on Friday.

As of Monday’s close, Versant shares were down 13% on the day to $40.57 per share.

The market value of the company is approximately $6.5 billion with 145.76 million shares, according to the split ratio. as part of spin offComcast shareholders accepted One Versant share for every 25 Comcast shares they own.

“It’s been a year in the making,” Versant CEO Mark Lazarus said on CNBC’s “Squawk Box” on Monday.

In November 2024, Comcast announced its intention to spin off the bulk of NBCUniversal’s cable TV networks, including MS Now (formerly MSNBC), CNBC, Golf Channel, USA, E!, Syfy, and Oxygen, as well as its digital properties Fandango, Rotten Tomatoes, GolfNow, and Sports Engine.

“As part of Comcast and NBCU, we had other priorities as a company,” Lazarus said. “We made different decisions because we had a different company and a different strategy. Now we are bringing them.” [assets] We will be able to invest in their own companies. “We will invest organically… and hopefully the market is listening to what we say.”

Lazarus said “vertical scale” was needed to move the business away from dependence on pay TV.

“While this is still a big and profitable part for us, it won’t be the end game,” he said.

There are very few traditional media companies that have gone public in recent years; This is due to the significant challenges faced by the industry due to the transition from TV packaging to streaming.

in 2025 NewsmaxThe conservative cable news network went public on the New York Stock Exchange and saw its shares soar from its opening price of $14 per share. It has fallen precipitously since its debut.

Instead, the media industry has been marked by consolidation and a flurry of new merger and acquisition deals. Paramount Skydance It completed its merger last year, and CEO David Ellison has been acquisitive since then. Warner Bros. Discoverywhich was formed following a merger in 2022, launched a sale process last year, which resulted in a proposed deal. netflix. Paramount has since made a hostile offer to WBD shareholders to improve the proposed transaction with Netflix.

The Versant spinoff was similarly a result of the destructive media environment. Led by managers CEO LazarusFormer chairman of NBCUniversal’s media group spends final months of 2025 convincing Wall Street investors said the future of business will focus on growing its portfolio’s digital presence.

The company also emphasized its strength in news and sports, two programming categories that still receive the vast majority of TV viewers. Although the networks in Versant’s portfolio have seen financial declines, they are still profitable and attract advertising money.

On Monday, Lazarus once again highlighted Versant’s dominance in sports and news, saying 62% of its portfolio is in these two content areas.

“We have a really strong position,” Lazarus said.

In September, Versant reported that its revenue had declined in recent years as consumers unbundled cable TV.

According to a filing Before going public, Versant’s assets, along with the Securities and Exchange Commission, had revenues of $7.1 billion in 2024, up from $7.4 billion in 2023 and $7.8 billion in 2022. The company said its net income attributable to Versant will be $1.4 billion in 2024, down from $1.5 billion in 2023 and $1.8 billion in 2022.

Shortly thereafter, rating agencies S&P Global and Fitch Ratings issued BB credit ratings on the company’s debt, noting stable outlooks and placing the company’s rating in junk territory. This was based on Versant’s plans to issue $2.75 billion of new senior secured debt to finance a one-time $2.25 billion cash distribution to Comcast and add $500 million to its balance sheet, according to S&P.

Versant’s low debt levels bode well for the company with both rating agencies and were a prominent theme in its presentation to Wall Street investors. Warner Bros. Media companies like Discovery are struggling with heavy debt loads while also struggling with declining cable TV subscribers and declining advertising revenue.

Both rating agencies noted the headwinds facing the traditional TV medium. S&P said “to balance the power [Versant’s] portfolio”, stating that revenue from linear distribution and advertising from its networks accounts for more than 80% of total revenue.

Fitch said Versant’s “strong viewer engagement and commitment” to TV networks, as well as its conservative debt structure, are a positive sign for the company.

Versant executives said at a recent investor day: presentation that the company plans to grow its digital business through acquisitions and investments.

— CNBC’s Gina Francolla contributed to this article.

Disclosure: Versant is the parent company of CNBC.