Ericsson Will Acquire Red Bee Media
Communications giant Ericsson announced today that it plans to acquire broadcast services company Red Bee Media, pending regulatory approval. At close, Red Bee will become part of Ericsson's Business Unit Global Services.
This shows Ericsson's desire to grow its role in the broadcast services market, the company says. It plans to use its edge in technology and services to help broadcasters and content owners succeed in the new world of mobile video.
Ericsson's broadcast services business began in 2007, and grew last year when the company acquired Technicolor's Broadcast Services Division. The Red Bee acquisition will add 1,500 employees, as well as facilities in the U.K., France, Germany, Spain, and Australia. Over 1,200 of Red Bee's employees are based in the U.K. Ericsson says the move will give it a U.K.-based workforce of around 4,000, making the U.K. a global media hub for the company.
Red Bee was created in 2005. It offers media services including media asset management, digital video publishing, metadata services, multilingual services, and creative services. Ericsson notes that Red Bee is the largest provider of editorial metadata in Europe, handling over 100,000 hours of subtitling every year for major broadcasters.
According to a June 2013 Ericsson Mobility Report, video contributes the most traffic to mobile networks, and it will grow by 60 percent each year through 2018.
What's old is new again as Ericsson reclaims the Red Bee name in order to position its broadcast services as independent and agile.
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