The article "Is this the end of the great CommScope dismantling?" by Jeff Baumgartner, published on Lightreading on the 5th, strikes the editor as a reminder of how CEOs of major North American companies cling to M&A (mergers and acquisitions). CommScope, which started as a cable company, grew into a communications industry giant step by step through acquisitions, only to later spin off businesses bit by bit—a sort of cycle.
With the help of AI tools, one can quickly review CommScope's M&A history over the past 20-odd years:
In 2004, CommScope acquired the enterprise networking business of Avaya, a wired network equipment company.
In 2007, CommScope completed the acquisition of Andrew Corporation, a wireless network equipment company.
Key strategic acquisitions:
In 2015, CommScope acquired the Network Solutions business of Tyco Electronics.
In 2019, CommScope acquired ARRIS International for approximately $7.4 billion. ARRIS had a strong foundation and a broad customer base in broadband communications, video technology, and other fields.
In early 2024, CommScope sold its Home Networks business to Vantiva but retained a 25% stake in the business.
In 2024, CommScope sold its Outdoor Wireless Networks (OWN) and Distributed Antenna Systems (DAS) businesses to Amphenol for $2.1 billion.
In 2025, CommScope announced the sale of its largest revenue-generating segment, Connectivity & Cable Solutions (CCS), to Amphenol for $10.5 billion. The transaction is expected to close in the first half of 2026. The move is primarily aimed at repaying the huge debts accumulated from the acquisition of ARRIS, optimizing the company's financial position, and allowing more resources to be focused on its remaining core businesses: Access Network Solutions (ANS) and Ruckus.
The AI analysis aligns perfectly with Baumgartner's article. His piece opens by stating, "After acquiring Arris in 2019, CommScope's size, product portfolio, and debt soared to new heights. Now, the company is all but dismantling the business it integrated roughly six years ago." Chuck Treadway, who took over as CEO in the fall of 2020, came into the role with the goal of shedding the massive debt from the Arris acquisition a year earlier. "Since I joined the 'CommScope Next' initiative, we've been looking for ways to enhance shareholder value while supporting our customers and employees. We will continue to pursue this strategy," he said. Baumgartner's central point in the article is that Mr. Treadway will likely explore a new round of acquisition opportunities next.
Buying and then selling, selling and then buying—this seems to be the main job of North American CEOs. They were full of ambition when buying back in the day, and now they act with decisive resolve when selling. At the root of it all is the pursuit of shareholder "value" and stock prices. Today, Amphenol has replaced the old CommScope as the new protagonist in M&A deals. Could there come a day when they too start selling off businesses?