Futuresource: Technicolor Getting a ‘Good Deal’

Technicolor’s $600 million play for Cisco Systems’ consumer premises equipment business represents quite the bargain, as it will help Technicolor shore up share in a shrinking yet still-substantial set-top box market, reckons Futuresource Consulting.

“At $600 million, Technicolor seems to be getting a good deal – an incremental $1.2 billion in STB sales and access to key North American cable and IPTV accounts, bringing its worldwide share up to 13% (15% of Pay-TV),” Jack Wetherill, Futuresource’s senior market analyst, home electronics, said in a statement. “It also gets Cisco’s Cable Modem business to complement its own Broadband CPE unit, lifting its worldwide share up to about 15%.”

Cisco got into the set-top game almost a decade ago when it put up $6.9 billion for Scientific-Atlanta.

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