Ericsson makes move for Technicolor broadcast
Ericsson has submitted a binding offer to acquire the Broadcast Services Division of Technicolor. The closing of the acquisition is subject to the usual relevant customary regulatory administrative approvals and consultations, but will give Ericsson 900 highly skilled professionals and playout operations located in France, UK and the Netherlands, as well as allowing it to substantially increase its current broadcast operations in terms of channels managed and households reached.
According to a statement, the announced acquisition intention is in line with Ericsson’s managed services strategy to broaden its capabilities in the broadcasting area. Ericsson applies the managed services business model established in telecom operations, to improve efficiency, introduce innovation and increase revenues for the broadcasters.
“As the TV industry is undergoing fundamental changes with the transition to multi-platform, on-demand television, teaming up with a trusted partner enables broadcasters to meet the increasing commercial and technological complexity and competition in the TV market,” says Magnus Mandersson (pictured), Executive Vice President and Head of Business Unit Global Services, Ericsson. “We combine our service and technology leadership with strategic investments in playout operations, broadcast capability and competence.”
Frederic Rose, CEO of Technicolor, declared: “This transaction is consistent with Technicolor’s strategy to focus on media monetization solutions, new growth businesses, and strengthen its balance sheet. For Ericsson, managed services are a core business and after completion of this divesture, the Broadcast Services activity will benefit from the company’s know-how and global scale necessary to remain a key player in the worldwide Broadcast industry.”