Comcast spinoff Versant slips into Nasdaq debut as cable concerns persist

Shares of Versant Media Group, home to channels like USA Network and ⁠CNBC, fell more than 10% in its market debut following its spinoff from Comcast, underscoring investor skepticism about traditional TV companies in the streaming era.Shares of Comcast rose about 1% in early trading Monday.

The spinoff is Comcast’s response to changing market dynamics in the media industry, with streaming squeezing traditional cable TV viewers, prompting media companies to reconsider their ownership of existing networks.

The separation will allow Comcast to focus on its streaming, movie and TV assets while losing 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 is home to 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 last traded at $41.80.

“Legacy TV networks are still consistently generating revenue, but their future prospects are bleak. “It’s difficult to get investors excited about companies whose best days are in the past,” said Ross ⁠Benes, senior ⁠analyst for ⁠TV and streaming at eMarketer. Versant is led by Mark Lazarus as CEO. The assets that make up Versant generate about $7 billion in annual revenue, Comcast said.

The company has a “strong balance sheet” and “substantial cash flow,” allowing it to enhance long-term shareholder value, Versant’s chief operating and financial officer Anand Kini said in a statement on Monday.