Harmonic sinks on video about turn
April 10, 2024
Harmonic stock was down 17 per cent earlier this week as the company announced a change of CEO and a U-turn on the decision to sell its video business.
Nimrod Ben-Natan, a 28-year product veteran at the company, will step up, replacing Patrick Harshman, who is set to retire as president and CEO in June. Ben-Natan has led Harmonic’s broadband business as senior VP and GM since 2012.
“Nimrod is ideally suited to lead Harmonic and our talented global team into its next chapter of innovation and growth,” Harshman said in a statement.
The company initiated a strategic review last October, with Harshman at the time telling analysts: “Due to changes in the marketplace and our customer strategies, synergies between our broadband and video businesses are now less compelling.”
Harmonic has a market lead in virtualised cable-network technology an area Ben-Natan has overseen those initiatives.
However, the company doesn’t seem to have received a compelling offer for its video assets. “The board concluded its review and determined that current market conditions do not support its value creation objectives for the video business,” Harmonic said.