Versant Leaders Express Satisfaction with Current Linear TV Network Portfolio, Downplaying Acquisition Hopes

While Versant CEO Mark Lazarus described NBCUniversal as “cousins” and “old friends,” both he and CFO Anand Kini minimized expectations for acquiring additional linear TV assets following their separation from Comcast.

“I’m very happy with the portfolio that we have,” Kini stated during the company’s investor day in New York. He noted that pay-TV currently accounts for 62% of their revenue, projecting a decline to 50% in the coming years. “We don’t really feel that there’s much value for us, frankly, in having more scale in that area,” he added.

Versant is set to spin off from Comcast in early January, retaining control over NBCU’s cable holdings, with the exception of Bravo. Meanwhile, the NBC broadcast network, Telemundo, local stations, as well as sports and news operations, will remain part of Comcast.

As the industry grapples with declining viewership and revenue, various linear assets are becoming available, with Warner Bros. Discovery, A+E Global Media, and others exploring strategic options.

Sports will play a pivotal role for Versant moving forward. Lazarus, who boasts a robust background in sports management over his four-decade career, addressed inquiries regarding the outlook for sports rights. Currently, the company holds licenses for the Olympics, the Premier League, and other NBCU offerings.

Lazarus outlined three key questions the company considers when evaluating sports rights: “Does it have an audience? Does it drive diversification of ad revenue? And what does it mean to our distribution partners?” He further clarified that the last question relates to whether pay-TV operators could charge higher fees to consumers.

“If you can acquire a property that satisfies all three of those criteria, that’s significant,” he remarked. “Two of those three is likely pretty good. But if it only meets one, it’s probably not something we’re going to pursue.”