Blonder Tongue puts MDU showcase cable systems on the block
Blonder Tongue Laboratories Inc. said it is seeking a buyer for BDR Broadband LLC, its Texas-based private cable TV business.
BDR Broadband, formed in 2002, acquired video and data cable systems from Verizon. Today, those systems pass 8,100 homes and serve roughly 3,300 customers.
At a strategic level, Blonder Tongue has also been utilizing the systems as a showcase for the company's video and high-speed data technology for multiple dwelling units (MDUs).
"From inception, our primary purpose was to enable us to implement and showcase our internally developed strategic solutions for the provision of video and high-speed data services in the MDU environment," said Blonder Tongue Chairman & CEO James Luksch. "We believe those goals have been accomplished."
Blonder Tongue also wants to get BDR Broadband off its books.
While BDR Broadband "is a successful growing business," it will also require more capital investment and will operate at a net loss, at least for the near-term, noted Blonder Tongue President Robert J. Palle Jr.
"By selling this business now, we will eliminate the adverse effect of BDR on Blonder Tongue's results of operations and should generate substantial liquidity in the form of cash that can be used as we focus our efforts on our core business and the transition of our manufacturing operations to China," Palle added.
Blonder Tongue did not say how much it hopes to gain from the sale of BDR.