Ericsson to buy Red Bee Media
Comms giant Ericsson has announced its intention to acquire UK-based services company from an entity controlled by Macquarie Advanced Investment Partners. The planned purchase – which is subject to the usual regulatory approvals – comes at a time of profound change for the synchronicities between the broadcast sector and communications providers, as highlighted by BT’s forthcoming launch of its own dedicated sports channels.
Ericsson says the purchase would support its strategy tio grow in the broadcast services market, and would bring into the fold 1,500 highly skilled employees, as well as media services and facilities in the UK, France, Germany, Spain and Australia.
The move follows on from the introduction of Ericsson’s broadcast services business in 2007, and its subsequent expansion with the acquisition of Technicolor’s Broadcast Services Division in 2012. If the new deal goes through, Red Bee Media will be incorporated into Ericsson’s Business Unit Global Services.
Magnus Mandersson, executive vice-president and head of Business Unit Global Services at Ericsson, says: “Ericsson is making a step change to our business, cementing our commitment to TV and broadcast services and continuing a journey we started in 2007. We can create value for broadcasters by making digital content more accessible, enabling monetisation of TV content more efficiently. Video traffic shows very strong uptake in the mobile networks and Ericsson can address the need of both broadcasters and telecom operators through our technology expertise and services capabilities.”