Acquisition broadens Ericssons broadcast services portfolio and further expands its capabilities in the TV industry
1,500 highly-skilled broadcast services professionals to join Ericsson
Adding new operations in Europe and Australia
Ericsson (NASDAQ:ERIC), a world-leading provider of communications technology and services, today announced its intention to acquire Red Bee Media, a world-leading media services company headquartered in the UK, from an entity controlled by Macquarie Advanced Investment Partners, L.P.
The acquisition, which is subject to regulatory approval, supports Ericssons strategy to grow in the broadcast services market and takes advantage of its technology and services leadership to help broadcasters and content owners address the convergence of video and mobility. It will bring 1,500 highly-skilled employees, as well as media services and operations facilities in the UK, France, Germany, Spain and Australia. This will further strengthen Ericssons broadcast services business, which was started in 2007 and expanded in 2012 with the acquisition of Technicolors Broadcast Services Division.
With 1,240 of Red Bee Media employees being based in the UK, Ericssons UK business would grow to around 4,000 employees and with more than one-third working in the media services business, the UK will become a global media hub for Ericsson.
Since its foundation in 2005, Red Bee Media has established itself as a strong and diverse business with a growing number of customers around the world. It provides a range of media services; from media asset management to playout and digital video publishing, metadata services, multilingual access services and creative services to major broadcasters and broadband platforms. Red Bee Media, which is known for its high quality playout services, is also the largest editorial metadata provider in Europe, delivers more than 100,000 hours of subtitling per year for leading broadcasters.
The Television and Media industry is undergoing an unprecedented transformation driven by consumers appetite for rich, interactive, anytime, anywhere entertainment. The confluence of communications, broadband and media technologies and the use of IP and mobile networks to generate and deliver such experiences is creating new opportunities in the ecosystem.
New services are expanding and re-defining the way consumers experience entertainment, placing new economic and creativity demands on businesses - whether they be broadcasters, telcos or other media companies - worldwide. According to the Ericsson Mobility Report June 2013 release, video is the single biggest contributor to traffic in mobile networks and this is expected to grow 60 percent annually until the end of 2018.
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, says Magnus Mandersson, Executive Vice President and Head of Business Unit Global Services, Ericsson. We can create value for broadcasters by making digital content more accessible, enabling monetization 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.
Ericssons core capabilities in hardware, software, systems integration and management/operations services have been deployed worldwide in the communications and broadband businesses to create success for many players. Ericsson provides innovative technology solutions for content acquisition, exchange, distribution, delivery and the provisioning of multi-screen entertainment experiences based on a 20-year, Emmy award winning heritage in media research and development.
Ericssons broadcast services expertise makes use of its industry leading position in managed services and serves leading regional and global broadcasters to bring enhanced efficiency into their business operations - being it live or thematic content.
Serving one billion subscribers worldwide, Ericsson is the leading provider of managed services for telecom operator networks. It has invested in processes, methods and tools in this segment for more than 15 years. In recent years, Ericsson has expanded this successful business model to other industries, such as utilities, transportation and the TV industry.
The closing of the acquisition is subject to approval from relevant regulatory authorities and other contractual conditions. After completion, Red Bee Media will be incorporated into Ericssons Business Unit Global Services.
NOTES TO EDITORS
Photo of Magnus Mandersson: www.ericsson.com/thecompany/press/photolibrary/management
Ericssons Mobility Report 2013: www.ericsson.com/ericsson-mobility-report
Ericssons role in the TV industry - media kit: www.ericsson.com/thecompany/press/mediakits/tv-industry
Broadcast Services background material: www.ericsson.com/thecompany/press/backgrounders
Read more about Red Bee Media at www.redbeemedia.com
Red Bee Media is one of the worlds leading media services companies. Working with broadcasters, content owners, platform operators and brands, the company blends technology and creative expertise to provide a range of services; from playout, multi-platform media management and distribution through to access services, metadata, content discovery, companion applications, content marketing and brand consultancy.
Ericssons acquisition of Technicolors Broadcast Services Division
www.ericsson.com/thecompany/press/releases/2012/07/1623638
Extended partnership with TV5Monde: www.ericsson.com/news/1638215
Ericsson to manage HBO Nordics playout services: www.ericsson.com/news/1638933
Ericsson to operate TV4 Groups playout services: www.ericsson.com/news/1355548
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Acquisition broadens Ericssons broadcast services portfolio and further expands its capabilities in the TV industry
