Harmonic to Sell Video Business to MediaKind, Focusing on Broadband Growth

Harmonic to Streamline Focus with MediaKind Acquisition of Video Business

Harmonic (NASDAQ: HLIT), a prominent player in virtualized broadband and video delivery solutions, announces a significant strategic shift with a binding offer from MediaKind, a leader in cloud-based video streaming technology. MediaKind plans to acquire Harmonic’s Video Business segment for an estimated $145 million in cash. This transaction, which is expected to be finalized in the first half of 2026, is subject to regulatory approvals and a consultation process with French employees. The move marks a pivotal moment for Harmonic, allowing the company to concentrate its resources and efforts on its core Broadband operations while ensuring that its Video Business is supported under MediaKind's umbrella.

The acquisition aligns with Harmonic's strategy to enhance growth initiatives within its Broadband segment. By divesting its Video Business, Harmonic anticipates a substantial capital influx, which will bolster its balance sheet and improve financial flexibility. Nimrod Ben-Natan, CEO of Harmonic, emphasizes that this transaction will enable the company to better serve its customer base and enhance shareholder value. The focus on Broadband allows Harmonic to leverage its expertise in delivering high-quality broadband solutions, ensuring that it remains competitive in a rapidly evolving market. Furthermore, the deal signifies Harmonic’s commitment to providing tailored solutions that meet the demands of its clients while streamlining operational efficiency.

MediaKind CEO Allen Broome highlights the potential of this merger, stating that it will enhance product solutions and investment capabilities within their portfolio. The acquisition is set to create a leading independent streaming infrastructure company, which could redefine the landscape of video delivery. This collaboration is expected to foster innovation across both companies, with MediaKind's resources complementing Harmonic’s established reputation in broadband solutions. As Harmonic reaffirms its financial guidance for Q4 2025, this strategic divestiture positions the company for sustained growth and long-term success.

In addition to the acquisition details, Harmonic has engaged leading legal and financial advisors for the transaction. Wilson Sonsini Goodrich & Rosati represents Harmonic, while Davis Polk & Wardwell advises MediaKind. Jefferies LLC and Moelis & Company serve as exclusive financial advisors for the respective companies. A conference call is scheduled for December 8, 2025, at 8:00 a.m. ET, where stakeholders can further discuss the implications of the transaction and its impact on both companies’ futures. This pivotal deal marks a transformative step for Harmonic as it navigates through the complexities of the broadband and video delivery landscape.