Shares of Versant Media Group, home to channels such as USA Network and CNBC, slumped more than 13% in its market debut after its spinoff from Comcast, underscoring investor skepticism around traditional TV businesses in the streaming era.
Shares of Comcast rose about 1% on Monday.
The spinoff is Comcast’s response to shifting market dynamics in the media industry, as streaming pressures traditional cable TV viewership, prompting media companies to rethink their ownership of legacy networks.
The separation will allow Comcast to focus on its streaming, film and TV assets while shedding its declining cable networks division – once a core part of the company’s business. Comcast first announced plans for the spinoff in late 2024.
Versant houses the NBCUniversal portfolio of networks, which also includes MS NOW – formerly MSNBC – and other iconic brands such as Oxygen, E!, SYFY and Golf Channel. It is also home to Comcast’s digital assets including Fandango, Rotten Tomatoes and SportsEngine.
The company’s shares were last trading around $40.
“Legacy TV networks still consistently generate revenue but their future outlook is bleak. It is tough to get investors excited about businesses whose best days are in the past,” said Ross Benes, senior analyst for TV and streaming at eMarketer.
Versant is headed by Mark Lazarus as chief executive. The assets making up Versant generate about $7 billion in annual revenue, Comcast has said.
The company has a “strong balance sheet” and “substantial cash flow,” positioning it to drive shareholder value in the long term, Versant’s operating and finance chief Anand Kini said in a statement on Monday.
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