Hathway Cable & Datacom says it is spinning off its cable TV business into a separate wholly-owned subsidiary. The parent company will retain the profitable broadband business, and this is a reverse of an expected position from Hathway.
Hathway says that broadband is the primary growth driver of the business. Spinning off the cable TV business allows, over time, for other separate investors to enter the company.
“Public Investors will benefit from direct stake in the parent entity housing the high growth potential business. Transfer of cable business to the wholly owned subsidiary would retain the value within Hathawy Cable and Datacom,” the company stated.