Commscope delays home networks spin-off

Commscope has officially delayed the spin-off of its home networks division.

Revealed as a part of its NEXT transformation plan in April 2021, Commscope announced plans to spin-off its home networks business as a standalone company. However, the company said that the division experienced ‘unfavourable performance’ in the second half of 2021, leading it to postpone the separation plan.

The issues that impacted Commscope in 2021 were felt across the entire industry, with supply chain shortages affecting companies of all shapes and sizes including the likes of Roku.

Commscope said that it remains committed to the separation of the home networks business from the core Commscope company, but it does not have a time frame for its completion. 

Chuck Treadway, president and CEO of Commscope, said: “In light of the ongoing impact of supply chain pressures on the Home Networks business that began in the summer of 2021, including semiconductor supply decommits and extended component lead times, we have determined that market conditions are not currently conducive to proceeding with the planned spin-off of Home Networks into an independent company in the second quarter of 2022. 

“We remain committed to the merits of strategically separating Home Networks from Commscope, and still plan to execute on that strategy when clear evidence of a more normalised and predictable supply environment emerges.”