Hoping for Harmonic
Cable Guy Alan Breznick, Cable/Video Practice Leader, Light Reading 2/13/2007
In a fresh report on the ever-fascinating auction for Terayon, ThinkEquity LLC analysts Anton Wahlman and Eric Kainer are pulling for Harmonic for the "health" of the digital video tech industry. They argue that cable operators and telco TV providers would "likely be ill-served to see yet another company" swallowed by either Moto or Cisco.
Noting that Harmonic has been a major reseller of Terayon digital video equipment, Wahlman and Kainer point out that Harmonic and Terayon "go back a long time." The analysts also note that the two companies' headquarters are located just a couple of miles away from each other.
But, even though Wahlman and Kainer are rooting for Harmonic, they don't think it'll actually win the bidding contest. Instead, they're betting on Motorola as the victor, calling it "the most motivated party" to buy Terayon. They also believe that a Terayon purchase best fits Moto's "extremely acquisition-prone recent past."
— Alan Breznick, Site Editor, Cable Digital News