Harmonic considers video business future
November 1, 2023
By Colin Mann
Broadband and media technologist Harmonic is undertaking a review of its video business, citing the need to better position Harmonic for long-term shareholder value creation.
It revealed the move as it released its Q3 figures, which saw revenue down to $127.2 million (€120.5m), compared to $155.7 million in the prior year period. Broadband segment revenue was $75.8 million, compared to $91.9 million in the prior year period. Video segment revenue was $51.4 million, compared to $63.8 million in the prior year period.
“After careful consideration of the growth opportunities in both our Broadband business and Video SaaS business, and our capital allocation priorities over the next several years, we have initiated a formal strategic review process for our Video business,” says the company. “Together with financial and legal advisors, we are assessing a range of alternatives for the Video business to better position Harmonic for long-term shareholder value creation. As part of this process, we have received indications of interest in our Video business from a number of parties over the past several months. Since the strategic review may cause some disruption to the business, we are conservatively guiding our Video business for Q4 2023.”
Harmonic says that no timetable has been established for the completion of the review, and the review may not result in any transaction. “We do not intend to disclose further developments with respect to the review process unless and until our board of directors approves a specific transaction or otherwise concludes its review,” it states.
Potential buyers include ATEME, CommScope and Synamedia.