One Equity Partners Takes Controlling Stake in Media Solutions
Ericsson has announced the latest moves for its media businesses, which include Media Solutions and Red Bee Media, units that have been separated from the main company as part of a long-term strategy.
Private equity firm One Equity Partners is now the majority owner of Media Solutions, which works with cable, satellite, and telecom providers. One Equity will own 51 percent of the company, and Ericsson the remaining 49 percent. The two will form an independent company which they'll run together. Ericsson notes that One Equity has strong experience in media and telecom investments. Ericsson did not disclose the terms of the agreement, but noted the deal should become final in Q3 of 2018.
Red Bee Media is the new name of Ericsson's Broadcast and Media Services business. Ericsson is developing Red Bee as an independent business, and is currently running a performance improvement program meant to save money and improve efficiency. While Red Bee's revenues for 2017 were negative, Ericsson notes that the company showed significant year-over-year gains.
“Red Bee Media is already today a leading broadcast and media service provider, with a strong customer base among the top tier broadcasters and service providers," says Steve Nylund, Red Bee's CEO. "Our focus is now on improving and transforming Red Bee Media, in partnership with our customers, to enable our full potential as an independent and focused media services business.”
What's old is new again as Ericsson reclaims the Red Bee name in order to position its broadcast services as independent and agile.
Firm's media unit continues to innovate while looking for a buyer; MediaFirst Content Processing promises low latency via distributed cloud infrastructure
Partnering with several major players, Ericsson spearheads efforts to bring innovative OTT experiences to viewers and meet the growing demand for streaming video.