By Andrew Bary
Versant Media Group, the cable networks spinoff from Comcast that includes CNBC, MS NOW (formerly MSNBC) and the Golf Channel, will start trading in mid December and is expected to carry a depressed valuation due to cord-cutting and a tough advertising environment.
The company, led by CEO Mark Lazarus, held an investor day Thursday afternoon, highlighting Versant's strengths and offering some full-year financial projections for 2025 to complement historical information in a filing Wednesday.
Based on the 2025 projections, Versant could have an equity market value of around $10 billion when it begins trading in mid December, Barron's estimates.
Analysts have talked about the company getting a multiple of around six or seven off current-year earnings before interest, taxes, depreciation and amortization (Ebitda), a common media financial measure. That would be a discount to Disney and Paramount in the nine to 10 range.
Based on Versant's share count and pro-forma debt, that could translate into a market value of about $10 billion and a share price of around $70, Barron's estimates.
Versant will begin when-issued trading around Dec. 15 under the ticker symbol VSNTV and then start regular trading on the Nasdaq under the ticker VSNT on Jan. 5, 2026. There will be 144 million shares outstanding with Comcast distributing one share of Versant for each 25 Comcast sha res, Comcast said .
In a presentation Thursday afternoon, Versant CEO Lazarus projected that Versant will generate $6.6 billion of revenues, $2.2 billion of Ebitda and $1.4 billion of free cash flow this year.
Revenues, which fell about 5% in 2023 and 2024, would be down about 6% in 2025 based on that projection. The Ebitda would be down from $2.8 billion in 2024 and $3.1 billion in 2023.
The company should have about $3 billion of debt outstanding following the spinoff and will borrow that money to help make a $2.25 billion payment to Comcast. Put a multiple of six on the 2025 Ebitda and the enterprise value would be around $13 billion, resulting in a market value of about $10 billion after debt, Barron's estimates.
If the market value is around $10 billion, the stock would offer a lofty free-cash flow yield of more than 10%. The company said in its form 10 filing that it has the capacity to pay dividends but hasn't set one yet.
Comcast is jettisoning the businesses inside Versant to focus on its core broadband and cable business as well as NBCUniversal, which includes the Universal Theme park, Universal movie studio, the NBC TV network and Bravo. Comcast is one of the bidders for Warner Bros. Discovery. It is viewed as a long shot to win the contest. Paramount and Netflix are seen as the leaders -- and the top choice of bettors on Polymarkets. If Comcast wins, it could combine Warner with NBCUniversal.
The Versant spinoff, which was announced a year ago, is an addition by subtraction move by Comcast because Wall Street views the Versant as a melting ice cube, or one in gradual decline.
Lazarus highlighted the reach of the company's cable networks, calling Versant "an industry-changing force."
In a note in mid November on Comcast, MoffettNathanson analyst Craig Moffett wrote that affiliate fees from cable providers and advertising made up about 86% of Versant revenues in 2024 and that "both are shrinking. Those declines are secular; they cannot be expected to reverse." The 2025 projections support that view.
Moffett wrote that Versant could be "an eventual buyer or seller" in the consolidating media world and that the market's assessment of that prospect would affect its valuation.
Comcast CEO Brian Roberts, who effectively controls Comcast, will also have the same power at Versant. He will own Class B stock that gives him a 33% vote even though that stock has an economic interest of just 1% in Versant.
Write to Andrew Bary at andrew.bary@barrons.com
This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.
(END) Dow Jones Newswires
December 04, 2025 17:03 ET (22:03 GMT)
Copyright (c) 2025 Dow Jones & Company, Inc.
Comments