Ericsson to acquire Red Bee Media

Ericsson, 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.

The acquisition, which is subject to regulatory approval, supports Ericsson's 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 Ericsson's broadcast services business, which was started in 2007 and expanded in 2012 with the acquisition of Technicolor's Broadcast Services Division.

With 1,240 of Red Bee Media employees being based in the UK, Ericsson's 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.

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.

"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," commented Mandersson.

Ericsson's 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.

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 Ericsson's Business Unit Global Services.