from Radio World /
02.05.2013 12:07 PM
Gores Closes on Harris Deal
Sale of the broadcast division, announced earlier, is finalized
LOS ANGELES and ENGLEWOOD, COLO. – Harris Corp. said it has completed its previously announced sale of its Broadcast Communications business to an affiliate of The Gores Group LLC for a package valued at $225 million. The price included $160 million in cash at closing, a $15 million subordinated promissory note and an earn-out of up to $50 million based on performance.

Gores and Harris officials have indicated that the business unit will continue to use the Harris Broadcast name during a three-year transition period. Harris Broadcast divison chief, Harris Morris, said in December that no product lines would be discontinued, and no immediate cuts were planned for the 1,700-person workforce.

Harris Corp., a $6 billion company, announced last May that it would sell the broadcast divison, exiting the sector after 50 years in the industry. The broadcast business got tough for Harris after the completion of the U.S. digital TV transition, when the transmitter sales declined. The division logged an operating loss of $30.8 million on revenues of $486 million for fiscal 2010, a 17 percent decline in revenues from the previous year. Results were combined with other businesses in 2011, and broken out as a $447.6 million write-down for fiscal 2012 due to an “unanticipated revenue decline and operating loss” for fiscal 3Q12. The parent company took another $98 million write-down on the sale in its most recently reported quarter.



Comments
Post New Comment
If you are already a member, or would like to receive email alerts as new comments are
made, please login or register.

Enter the code shown above:

(Note: If you cannot read the numbers in the above
image, reload the page to generate a new one.)

No Comments Found




Thursday 10:05 AM
NAB Requests Expedited Review of Spectrum Auction Lawsuit
“Broadcasters assigned to new channels following the auction could be forced to accept reductions in their coverage area and population served, with no practical remedy.” ~NAB

Wall Street Communications /   Friday 08:05 PM
Dejero Releases LIVE+ NewsBook Software for Mac
Wall Street Communications /   Thursday 06:44 PM
Dejero Ranks Ninth on Deloitte's Technology Fast 500(TM) in North America

 
Featured Articles
Discover TV Technology