Comcast’s (CMCSA) just revealed the name of its spin-off company, previously referred to as SpinCo. The new company will now be called Versant, a name chosen to emphasize its versatility and pronounced like the root of the word “conversant.”
This spin-off was first announced late last year as Comcast said it wanted to “play offense” in a media industry increasingly affected by increased cord-cutting.
The newly formed “Versant” will include most of NBCUniversal’s cable television networks, such as USA Network, CNBC, MSNBC, Oxygen, E!, SYFY, and the Golf Channel.
However, Comcast will maintain ownership of its NBC broadcast network, including NBC News, and its Peacock streaming service. Notably, the Bravo channel, important for Peacock’s original content, will not be part of the spin-off.
While many streaming platforms are becoming profitable, the decline of traditional cablefor legacy media companies.
For years, revenue from traditional cable subscribers, including affiliate fees (payments made by pay-TV providers to carry channels), helped sustain networks. But with the rise of streaming and the drop in cable subscribers, affiliate fees have decreased. Meanwhile, new streaming companies entering the advertising market are also taking a hit to traditional networks’ revenues.
The combination of shrinking cable viewership and heavy debt loads has forced many media companies to cut costs, leading to layoffs and restructuring. Wall Street analysts believe that “Versant” could potentially acquire other struggling cable properties in the future.
Comcast shares traded flat shortly following the announcement