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Harris Announcement Sends Ripples Through Industry
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Reactions are
trickling in after Harris Corp.’s announcement
that it plans to sell off its broadcast communications business.
Nautel President
Peter Conlon told Radio World that the decision “starkly illustrates how
challenging the transmitter business has become.”
“I have always had
great admiration for Harris Broadcast as a formidable, quality competitor,”
Conlon wrote in an email. “Many of us at Nautel have good friends at Harris and
we all hope the best for the entire team there.”
Harris Marketing
Director Terri Black told Radio World that the change had been “brewing for
awhile.” Several months ago, when Bill Brown came aboard as CEO and examined
the company’s portfolio strategically, Black said, “it didn’t make sense to
continue with broadcast as part of the corporation.”
“Broadcast
communications has become less and less aligned with our core business,” she
said. That core business consists mostly of “large government contracts …
predictable revenue models.”
As for who might
buy the broadcast piece of Harris, “We’re looking for someone who can partner
with us and strategically align with broadcast and new media environments,”
Black said. “Someone who can help us progress our strategic objective of
transforming the industry.”
A team within the
communications division team will be working with outside investment bankers in
the divestment process, according to Black. “We don’t have any idea nor could
we disclose from a competitive standpoint who we’re looking to invest in us,”
she said.
Black acknowledged
that the decision had been difficult, due to Harris’ longstanding involvement
in broadcast and the fact that many employees and board members have been with
the company for 20 or more years.
Brian Galante, Dimension PR, handles media relations for Harris in North America, Central America and Latin America. He told Radio World that the impact on Harris clients and employees in broadcast communications will be “absolutely none. It will be business as usual.”
“There will be no
changes in operations, employee status, executive and management levels,” he
said, adding that the broadcast segment remains a part of Harris Corp. until the
assets are sold.
Approximately 300
people are currently employed at Harris’s Quincy Broadcast Communications
facility in Quincy, Ill., according to the Quincy
Journal. The newspaper quoted Quincy Mayor John Spring as saying he had
been in contact with Harris officials and that “I'm saddened to hear the news …
It is my hope they can sell that business and someone will come in to see that
the Quincy facility provides a high quality of work.”
As of today, the
broadcast division is going up for sale. Black said that they hope to find a
buyer by the company’s fiscal 2013, which begins in June.
When asked whether
Nautel would consider buying all or part of Harris Communications, Peter Conlon answered
vaguely: “It is difficult to predict what this will mean for the industry, but
our intention will be to continue to innovate and to provide our customers with
the finest service possible.”
Radio World will
continue to provide updated reactions and feedback as the Harris changes take
effect.
Related:
Harris Will Sell Its Broadcast Business
What Next for the Harris Broadcast Biz?
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