Shares of new public Slope Media fell on the first day of trading as independent public companyclosing down 13% at $40.57 on Monday.
Executives, led by CEO Mark Lazarus, were on hand on the Nasdaq Market for the debut of the new independent organization, which includes television networks and additional digital businesses including CNBC, MS NOW (formerly MSNBC), USA Network, Golf Channel, Oxygen, E!, Syfy, Fandango, Rotten Tomatoes, GolfNow, GolfPass and SportsEngine. Comcast announced plans about a year ago to separate its flagging linear cable assets from its core broadband business and the rest of NBCUniversal.
As a result of the spin-off, Comcast shareholders received one Versant share for every 25 Comcast shares. The decline in Versant stock was expected because index funds and other investors were primarily interested in curbing Comcast's cycle, and it could take several weeks or more for the shareholder base to change and the stock to stabilize.
At a recent investor day, CEO Mark Lazarus and his team outlined plans develop a new company outside of cable television. Versant initially expects to generate revenue of $6.7 billion, of which 62% will come from linear distribution, 23% from advertising, 13% from digital platforms and 3% from content licensing, etc. It also expects $2.3 billion in EBITDA (earnings before interest, taxes, depreciation and amortization) and $1.5 billion in free cash flow.
It debuts with gross debt of $3 billion, cash on hand of $750 million and total liquidity of $1.5 billion.
The event is being closely watched as a statement about the future of cable television, which generates significant revenue but is rapidly declining as viewers shift to streaming. Versant is also particularly interesting as a proxy for Discovery Global, another of Warner Bros.'s new linear TV properties. Discovery, which plans to cease operations in the third quarter of 2026 as it sells its studios to Warner Bros. and Netflix's streaming assets. David Ellison's Paramount is trying to derail a deal announced late last year to acquire the entire WBD company.
The takeover battle between the two contenders has largely come down to Discovery Global, which has a par value of about $1 a share but WBD and some Wall Street officials say is worth significantly more.
The share price is typically calculated using a multiple of projected EBITDA and other metrics that have not yet been determined for Discovery Global, including the amount of debt that will be assigned to the new company.
Meanwhile, Versant began new digs and announced in late December that it was making the historic New York Times building its permanent home. It temporarily housed three floors there, but Lazarus told employees in a memo that he was taking on three more and renovating all six, as well as the lobby and cafeteria at 229 West 43.district Street.
“After careful consideration and hearing from many of you about how this location enhances your commute, we have decided to remain here. We are excited to become an integral part of this media, entertainment and financial hub, joining our neighbors Paramount Global, Snap Inc., TikTok, Roku, Nasdaq, Morgan Stanley and Bank of America,” he wrote.
“Leaving 30 Rock and settling into this unique space wasn't always easy, but it was also a special moment in our company's history. We now look forward to putting down roots together and making this space our own permanent Versant headquarters in New York City.”
