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)
- Apprehensions over “bricking” (devices ceasing to work) are quelled by iRobot’s statement:
-
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.
- Quote:
-
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)
- Versant’s standalone 2025 projections:
-
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.
- John reviews (with comedic pride) Versant’s 183-page Investor Day presentation:
-
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)
- Unparalleled scale and stability:
-
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.
- Zillow (-9%): Google is reportedly testing putting property listings in search, threatening Zillow’s traffic and business model.
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.
