Ericsson to Buy Red Bee Media to Add Broadcast Services
Ericsson AB (ERICB), the largest maker of wireless networks, agreed to buy U.K. media services company Red Bee Media Ltd. from a group led by Macquarie Advanced Investment Partners LP to expand in services to broadcasters.
The acquisition of Red Bee Media, with its 1,500 employees, will help Ericsson take advantage of increased video consumption via web-surfing devices, the Stockholm-based manufacturer said today in a statement, without disclosing the purchase price.
Red Bee Media’s customers include British Broadcasting Corp., phone company BT Group Plc (BT/A), pay-television provider British Sky Broadcasting Group Plc (BSY) and the MTV unit of Viacom Inc. (VIAB) Ericsson acquired Technicolor SA’s broadcast-services division last year to bolster its own unit started in 2007.
“We can create value for broadcasters by making digital content more accessible, enabling monetization of TV content more efficiently,” Magnus Mandersson, the Ericsson executive vice president who runs its global services business, said in the statement. “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.”
Ericsson rose as much as 0.8 percent to 76.55 kronor and was trading up 0.3 percent at 9:47 a.m. in Stockholm. The stock has gained 17 percent this year, valuing the company at 251 billion kronor ($37.7 billion).
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