The Opportunity
Versant Media Group (VSNT) just completed its first week of trading on the NASDAQ following its spin-off from Comcast (CMCSA).
Versant Media Group owns cable networks such as CNBC, the Golf Channel, and USA Network along with other media properties such as Rotten Tomatoes and Fandango. You can read my initial writeup on Versant Media Group here to get a full background on Comcast’s former portfolio of cable networks and media properties.
I initially overestimated the price at which Versant would open and the range in which it would trade during its first week as a public company. Fortunately, I did not build my full position until much of the initial selling pressure had subsided.
I now believe Versant offers a more attractive risk-adjusted return than my initial projections, primarily because the stock is trading at materially lower prices than I originally anticipated.
Versant shares are down approximately 25% this week, a move that appears driven by indiscriminate, forced selling by institutions rather than any deterioration in the underlying business or outlook.
Such price dislocations are common in spin-offs, where shareholders of the parent company (Comcast in this case) are forced to sell for non-economic reasons. These reasons include investment mandate constraints, index rebalancing, or simple unfamiliarity with the newly independent company. For instance, because Comcast is part of the S&P 500 and pays a dividend, many index and income-focused funds were forced to sell Versant shares following the spin-off this week, regardless of their views on Versant’s underlying business.
This “forced selling” creates short-term pricing inefficiencies that have little to do with fundamentals.
Historically, spin-offs have been a fertile hunting ground for value investors precisely because forced selling can overwhelm natural buyers in the early days of trading.
Versant has durable cash flows and a conservative balance sheet. The massive selling pressure in Versant’s first week of trading has presented a unique opportunity for value investors to acquire a solid portfolio of media properties at a valuation well below fair market value.
Versant’s First Week as a Public Company
Versant Media Group traded in the “when-issued” market from Monday, December 15th, 2025 - Friday January 2nd, 2026. The stock opened in the when-issued market at $55 and dropped to the lower 40’s before settling in the mid-40’s.
Versant started trading on the NASDAQ on Monday, January 5th. The stock opened around $45 and has fallen more than 25% since the opening on Monday. Versant’s stock price now sits at $34.41 per share and I believe is undervalued on conservative metrics and offers a high “margin of safety” at current prices.
Versant’s Valuation
Currently, Versant trades at just 3.7x EV to the mid-point of estimated EBITDA for 2026 and 63% of book value. Moreover, Versant trades at just 4.5x price to free cash flow based on the mid-point guidance of $1.1 billion in free cash flow for 2026. That implies a free cash flow yield of 22.4%.
Here are management’s projections for 2026:
Revenue: $6.15- $6.4 billion
EBITDA: $1.85 billion - $2 billion
Free Cash Flow: $1 - 1.2 billion.
Versant is targeting a dividend payout of 20% of free cash flow for 2026 and will likely authorize a $1 billion share repurchase which would probably be spread out over the next 3 - 5 years.
Based on the dividend payout target, I am projecting a dividend yield of 4 - 5% for Versant in 2026.
If management uses just 20% of free cash flow per year for share repurchases, then shareholders may earn 8 - 10% from just dividends and share buybacks at the current price level of $34.41. These targets are assuming the mid-point of the guidance for free cash flow in 2026.
Next, I detail my updated valuation for Versant and what today’s price implies for expected returns over the next 1–2 years…
