Versant completed its acquisition of Free TV Networks Tuesday, expanding the spun off cable assets company’s reach in free ad-supported television.
Free TV Networks houses free over-the-air digital broadcast networks, including Outlaw, 365BLK and Busted TV. Additionally, the company offers free ad-supported streaming or FAST channels to subscribers.
As part of Versant, the Free TV Networks will help the company scale its access to audience outside of the traditional pay television model.
“As we prepare to launch Versant as an independent public company, we are focused on building a business with greater scale, more ways to reach audiences, and a stronger foundation for long-term growth,” Mark Lazarus, CEO of Versant, said about the acquisition in December. “Reaching an agreement with Free TV Networks furthers that ambition and reflects our commitment to expanding the range of services and experiences we offer.”
Free TV Networks has more than 20 million households accessing its channels exclusively over-the-air, representing 16% of all households, according to data from TVB. Executives for Versant said that the transaction will help diversify the spinoff’s growing entertainment business and expand its FAST offerings.
Founder of Free TV Networks Jonathan Katz has joined Versant to continue leading day-to-day operations of the business. He will report to David Pietrycha, chief revenue and business officer.
The completed acquisition follows the cable spinoff’s acquisition of Indy Cinema Group, operating under Fandango. Versant said that this acquisition will help expand its film business to explore new market opportunities within the cinema space.
Versant did not have the strongest showing at its Nasdaq debut, plunging 13% on its first day of trading.
The newly minted company houses cable networks USA Network, CNBC, MS NOW (formerly MSNBC), Oxygen, E!, SYFY and Golf Channel, as well as digital assets Fandango, Rotten Tomatoes, GolfNow and SportsEngine.
Over the next several years, half of Versant’s revenue is expected to come from its new growth areas, while the other half will come from the pay TV business. Over half of the company’s pay TV subscriber base are covered by distribution agreements through 2028 and beyond.
