Brew Markets - December 15, 2025

Episode: Roomba Hits the Dustbin & Will Spinning Off Cable Nets Reignite Comcast?
Host: Ann Berry
Producer & Co-host: John Crateau

Episode Overview

This episode covers several of the day's most compelling market developments:

• iRobot, maker of Roomba, files for bankruptcy and what that signals for public company health.
• Comcast spins off its cable networks into a new company, Versant, and the implications for shareholders and the future of traditional cable TV.
• Procter & Gamble’s stock stagnation—dissecting causes and evaluating its near-term outlook.
• Quick market news wrap-up including moves in Zillow and ServiceNow.
• Listener Q&A addressing practical investor questions.

Ann Berry delivers insightful analysis in her signature engaging, conversational tone, with producer John Crateau joining for deeper dives and color commentary.

Main Segments & Key Discussion Points

1. iRobot’s Bankruptcy and What It Reflects About Public Companies

[00:31–04:03]

• iRobot’s Downfall:

  • Once valued at $4.5 billion (Jan 2021), iRobot has suffered an 85%+ price drop, ultimately filing for Chapter 11.
  • Contributing factors:
    • Impact of tariffs and increased competition from cheaper brands.
    • Failed $1.7B Amazon acquisition in 2022, terminated due to antitrust blockers in US/EU.
    • Amazon compensated iRobot with a $94M termination fee, but iRobot continued to burn cash quarterly, leading to insolvency.
  • The bankruptcy process (“prepackaged Chapter 11”) is expected to finish by February; 100% equity will transfer to a Chinese contract manufacturer and iRobot’s main lender.

• Impact on Stakeholders:

  • Public shareholders face a “complete wipeout”.
  • Quote:

    “It’s a complete wipeout. … Frankly, better news for Roomba users than for iRobot shareholders now.” — Ann Berry (03:37)

• Roomba Users’ Concerns:

  • Apprehensions over “bricking” (devices ceasing to work) are quelled by iRobot’s statement:

    “…will continue operating in the ordinary course with no anticipated disruption to its app functionality, customer programs, global partners, supply chain relationships or ongoing product support.” — Ann Berry quoting iRobot (03:21)

• Wider Corporate Health Trend:

  • Other notable 2025 bankruptcies: 23andMe, Sunova Energy, Spirit Airlines (with emergency financing).
  • Despite multi-year-high valuations, large public company bankruptcies are up, especially outside the AI sector—driven by higher costs of capital, supply shocks, and inflation.
  • Quote:

    “So there’s a K shape emerging not just in consumer health, but in corporate health too.” — Ann Berry (03:56)

2. Comcast Spinning Off Cable Networks into Versant

[04:32–13:31]

• The Rationale:

  • Traditional cable subscriptions have plummeted from 105M US households (2010) to 69M (2025).
  • Cord cutting is now multi-generational.
  • Comcast (NBCUniversal parent) is spinning out its cable assets into a standalone company: Versant Media Group ("Versant" or "VSNT").
  • Versant will include USA, Syfy, E!, CNBC, Golf Channel, MSNBC/Ms. Now, etc.

• Preparing for the Spin:

  • Quote:

    “Have you noticed they've also changed their logos? … a little bit more angular, a little bit more tech-like. … Comcast really does need to do something to appease its shareholders.” — Ann Berry (06:12)

  • Comcast stock: down 25% year-to-date and 45% over five years; pressure is on for shareholder value.

• Financials & Valuation:

  • Versant’s standalone 2025 projections:
    • $6.6B revenue
    • $1.4B cash flow
    • Healthy free cash flow conversion, but revenue projected to drop 6% in 2025
  • Barron’s estimates Versant will land at a $10B market cap.
  • Quote:

    “It’s shown how much one big company has to do to educate current and potential shareholders on what the value of the business that’s being spun out actually is.” — Ann Berry (06:33)

• Valuation Context (Warner Bros Discovery Example):

  • Cable channel valuations (as comps) are highly uncertain; estimated between $2.5–$10B.
  • The big unknown: Will investors embrace an old-media standalone player?

• Mechanics of the Spin-off:

  • Eligibility: Hold Comcast shares by market close tomorrow (Dec 16); for every 25 shares of Comcast, shareholders get 1 share of Versant.
  • Versant starts independent NASDAQ trading (VSNT) on January 2, 2026.
  • No fixed IPO price — market sets initial value.
  • Quote:

    “After January 2nd, Versant, you’re on your own, you’re at the mercy of the markets.” — Ann Berry (10:38)

• Pre-spin Speculation:

  • “VSNTV” is an informal “when-issued” ticker; real trading and valuation to begin post-spin.
  • Ann: “I’m going to be all eyes on January 2nd when this thing really goes independent.” (11:37)

• What’s Versant Pitching to Investors?:

  • John reviews (with comedic pride) Versant’s 183-page Investor Day presentation:
    • Focus on “live programming” edge vs. streaming-only services.
    • “Ms. Now” is #2 rated cable network & #1 news brand on YouTube.
    • But—little clarity on new growth areas or innovation.

• Shareholder Reaction:

  • Comcast shares +3.5% on the day, reflecting enthusiasm for portfolio optionality.

3. Procter & Gamble: Stuck in a Holding Pattern

Listener Q&A: [14:33–19:21]

• Question from Alex, Anaheim: Why has P&G (PG) stock struggled despite beating earnings and seemingly attractive valuation metrics?

• P&G’s Legacy & Current Challenges:

  • Unparalleled scale and stability:
    • Brands like Pampers, Tide, Bounty, Crest, Olay
    • 135 years of consecutive dividends
  • Growth has slowed: Organic growth expected at 2% (2025) vs. 5% (2019).
  • Quote:

    “Go into any home and you’re almost certainly going to see a P&G product in a cupboard somewhere.” — Ann Berry (15:12)

• Restructuring & Cost-Cutting:

  • Two-year restructuring (initiated June 2025), seeking $1.8B in savings and cutting ~7,000 jobs (15% of workforce).
  • Streamlining distribution and exiting some markets (e.g., winding down in Pakistan).

• Earnings, Valuation & Market Sentiment:

  • Earnings beats often attributable to strong pricing, not volume growth (which was flat).
  • PE ratio has trended down but not alarming.
  • 24 Wall St. analysts: 14 Buy / 10 Hold (“wait and see”) / 0 Sell.
  • Analysts waiting for evidence that restructuring yields real growth and margins.
  • Quote:

    “While we have a more sanguine view on P&G’s long-term potential, its near-term path to recovery remains uncertain even as we contemplate P&G’s strong execution which keeps us on the sidelines with a neutral rating overall.” — Goldman Sachs (18:56, read by Ann)

4. Quick Market Wrap: Headlines of the Day

[19:56–21:24]

• Closing Numbers:

  • Nasdaq down 0.6%
  • S&P 500 and Dow each down about 0.1%

• Top Movers and Market News:

  • Zillow (-9%): Google is reportedly testing putting property listings in search, threatening Zillow’s traffic and business model.
    • Ann: “This reminded me of ChatGPT becoming a place you could search and then transact immediately. This has that sort of smell and flavor.” (20:45)
  • ServiceNow (-11%): Announced a $7B acquisition of Armis (cyber/IOT security). Market worried about overpayment and integration risk.

Notable Quotes

(with timestamps and speaker)

• On iRobot’s fate:

  “It’s a complete wipeout.” — Ann Berry (03:37)

• On the new Versant media logos and rebranding:

  “They’re all looking a little bit more angular, a little bit more tech-like.” — Ann Berry (06:15)

• On spinning off cable vs. broader media consolidation:

  “Estimates for the value of the Warner Brothers Discovery cable channels…somewhere between two and a half and $10 billion. It’s a very wide range which kind of puts into perspective how does one invest in Versant…” — Ann Berry (08:43)

• On the complexity of shareholder value during a spin-off:

  “There is a direct link between the valuation of Versant and the valuation of Comcast… That’s until those new shares are distributed.” — Ann Berry (10:21)

• On P&G’s omnipresence:

  “Go into any home and you’re almost certainly going to see a P&G product in a cupboard somewhere.” — Ann Berry (15:12)

• On P&G’s near-term outlook:

  “Its near-term path to recovery remains uncertain even as we contemplate P&G’s strong execution…” — Goldman Sachs report, read by Ann (18:56)

• On Google’s real estate listing experiment:

  “This sort of has that sort of smell and flavor [of disruptive platform change] at the moment.” — Ann Berry (20:45)

Key Timestamps

• iRobot bankruptcy deep-dive: 00:31–04:03
• Comcast/Versant background & market implications: 04:32–13:31
• Procter & Gamble analysis/Q&A: 14:33–19:21
• Market wrap (Zillow, ServiceNow): 19:56–21:24

Tone & Style

The episode is candid, engaging, and educational—Ann Berry combines sharp financial insight with accessible, relatable examples. Jargon is explained, numbers are contextualized, and both long-term trends and daily market moves are woven together for a complete investor briefing.

For Listeners:

This episode is a must-listen if you’re interested in:

• How sudden bankruptcies reflect deeper market dynamics
• What cable TV’s unbundling means for “old media” investors (and whether spinoffs spark new value)
• Blue-chip stock analysis—why even the sturdiest names can flounder while market psychology swings
• Staying sharp on trending headlines that could impact your portfolio

Listener questions and real-world concerns are welcomed and addressed thoughtfully, making Brew Markets Daily a handy guide for everyone from market newcomers to experienced investors.