Changes are afoot at communications giant Comcast (CMCSA), as its plan to spin off its cable channels is not only going full steam, but it also has a new name: Versant. The new property will contain a range of cable networks under its umbrella, and even has a strategy for handling sports. All this together was welcome enough for shareholders, who sent shares up fractionally in Thursday afternoon’s trading.
The name “Versant,” reports noted, was intended not so much to be “consumer-facing,” but rather instead to emphasize that it is a “…house of brands.” Chief executive Mark Lazarus noted that Versant is intended to emphasize “versatility,” as well as how it covers a wide range of subjects. Which is reasonable enough, as the Versant brand will contain news channels CNBC and MSNBC, entertainment channels like Syfy, Oxygen and E!, and even sports, like the Golf Channel.
Versant is expected to be its own entity before 2025 ends, and—despite the overall decline in linear television—will actually be a productive entity. Last year, the assets under Versant’s control represented about $7 billion in revenue. People are still watching linear cable, after all, though those numbers are at least somewhat in decline.
And Now, Sports
Naturally, sports will be a big part of the Versant operations, because as we have seen extensively throughout streaming media so far to date, sports are big, and they mean viewers. Lazarus also detailed how Versant plans to deal with sports, especially since it has the Golf Channel and reservation platform GolfNow under its umbrella.
Lazarus, in an interview with CNBC, noted that he has already begun talks with Major League Baseball, as well as the National Women’s Soccer League, about getting live game rights for airing on Versant. Given that Lazarus was formerly chairman of NBC Sports, taking over for Dick Ebersol back in 2011, it is a safe bet that Lazarus still has plenty of contacts that he can get a hold of to talk about getting those rights in.
Is Comcast Stock a Good Buy Right Now?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on CMCSA stock based on nine Buys, nine Holds and two Sells assigned in the past three months, as indicated by the graphic below. After a 7.24% loss in its share price over the past year, the average CMCSA price target of $40.53 per share implies 17.24% upside potential.
