Ericsson to Purchase Red Bee Media

LONDON: Ericsson, one of the world’s largest providers of wireless networks, has agreed to buy Red Bee Media from a group led by Macquarie Advanced Investment Partners.

While the acquisition is still subject to regulatory approval, the move would bring to Ericsson 1,500 employees as well as media services and operations facilities in the U.K., France, Germany, Spain and Australia. The purchase would help Ericsson take advantage of increased video consumption through web-surfing devices. Red Bee Media Group’s customers include British Broadcast Corp., the pay-TV provider British Sky Broadcasting Group and the MTV unit of Viacom.

"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," said Magnus Mandersson, the executive VP and head of business unit global services at 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."