CommScope Spin-off (Home Networks) Notes
Update April 15, 2021
- On April 8, CommScope Inc announced that it will spin off its Home Networks business in a tax free transaction in Q1 2022.
- The Spin-off will be consided the “bad” business. In the last quarter, revenue declined by 31% and adjusted EBITDA declined by 44%. Home Networks provides set top boxes for customers that want to watch cable. Given cord cutting, this is a business in secular decline.
- The RemainCo will keep the better businesses that are growing as shown below.