Mark Lazarus On Versant Media’s Strategic Plan To “Build Beyond Cable”

 Versant Media CEO Mark Lazarus kicked off the company’s investor day Thursday by outlining what he called the company’s “mandate to build beyond cable.”

The company, which will formally spin off from Comcast in early January, owns most of the former NBCUniversal cable portfolio as well as a number of digital businesses. With Warner Bros. Discovery, A+E Global Media and other owners of linear networks looking to restructure or sell them amid secular decline due to cord-cutting, Versant has been presumed to be a vehicle to roll up some of those assets. While the trajectory is heading downward, the networks throw off billions in cash.

“This is an incredibly intense time and a challenging time for our industry,” Lazarus said. “We are certainly aware of the trend.” Nevertheless, he said, Versant plans to “defy expectations” with its strategy. “We are a company with a mandate to build beyond cable.”

Contrary to some industry perception, Versant is “not stuck in old media,” Lazarus said. “Our mission is to expand beyond the multi channel universe, and these vertical markets all have significant opportunities. In fact, one of our definitions of Versant is ‘vertically ascendant,’ and we are well on our way. We are a leader in four large and growing markets that are vital to their audiences and their partners. With live programming, you just can’t miss. We have an experience management team that is ready to run with these businesses, and to use this unique combination of financial scale and flexibility to invest today as we build for tomorrow.”

With its golf tee time reservation systems, movie ticketing and other services, Versant plans to bring in half of its estimated $6.6 billion in projected 2026 revenue from non-cable sources. The company’s digital properties handled some 140 million transactions last year, Lazarus noted, making it a significant player in the service economy. As it convened its investor day, Versant said it had acquired film tech firm Indy Cinema, a complement to Fandango; and Free TV, a multicast network operator capable of bringing in revenue from inside and outside the pay-TV bundle.

At the same time it looks beyond traditional cable, Versant plans to invest heavily in storied networks like USA, E! and other networks. Lazarus, who had a lengthy run overseeing the networks during his exec run at NBCU, said he saw first-hand how “under-resourced” they became under Comcast. “But that won’t be the case” under Versant, he pledged, without offering any specific numbers. “We will re-invest in these brands.”

The company has a three-pronged plan, Lazarus said: emphasizing premium content; reach new audiences; and launch and scale digital properties.

Before taking the helm of Versant, Lazarus had been a long-tenured NBCUniversal exec, most recently serving as chairman of NBCU’s Media Group. Sports has been his main metier, including during a run at Turner Broadcasting in the 2000s.

The origins for Versant were in comments from Comcast Co-CEO Mike Cavanagh in the fall of 2024. He let Wall Street analysts know that the company planned to spin off most of NBCUniversal’s cable portfolio into a stand-alone entity.

While the transaction did not have to jump through the hoops that other deals do, it has taken a bit more than a year for the legal and financial work, staffing and a host of other moves to be completed. On Wednesday, Comcast’s board of directors officially signed off on the spin, which will take effect on January 2. Versant will trade on the Nasdaq under the ticker symbol VSNT.

As it proceeds with the Versant maneuver, Comcast is also still in the running to acquire the studio and streaming division of Warner Bros. Discovery. Acquiring the asset, whose value is estimated at more than $70 billion, will introduce a host of questions given the combined portfolio of the companies.

https://finance.yahoo.com/news/comcast-apos-cable-spinoff-versant-200453106.html