Posts Tagged ‘BBC Broadcast’

More Broadcast Industry M&A: Ericsson Announces Intent to Purchase Red Bee Media

broadcast technology market research | Posted by Joe Zaller
Jul 02 2013

Ericsson announced that it is purchasing Red Bee Media from Macquarie Advanced Investment Partners, L.P.

Financial terms were not disclosed.

Headquartered in the UK, RedBee is a leading provider of broadcast playout and subtitling services.  It was created when the former BBC Broadcast Limited was acquired by Macquarie in 2005 for approximately $260m.  The company has approximately 1,500 employees, as well as media services and operations facilities in the UK, France, Germany, Spain and Australia.

Red Bee had revenue of approximately $250m in 2008-9, according to published reports.

The deal marks further consolidation of the European playout business by Ericsson.  In March 2012, Ericsson acquired the broadcast services business of Technicolor in a deal that included €19m in cash and a potential earn-out of up to €9m.

In its announcement, Ericsson said the deal will further expand its capabilities in the TV industry, and highlighted the fact that it can bring enhanced efficiency into the business operations of regional and global broadcasters.

This is could be a good move.  Our broadcast industry market research shows that increased efficiency is not only one of the key business concerns of broadcasters and media companies, it is also a key driver of purchasing decisions for many broadcast technology end-users world-wide.

According to Ericsson, the TV and Media industry is “undergoing an unprecedented transformation driven by consumers’ appetite for rich, interactive, anytime, anywhere entertainment. The confluence of communications, broadband and media technologies and the use of IP and mobile networks to generate and deliver such experiences is creating new opportunities in the ecosystem.”

The company has said that its strategy is “to grow in the broadcast services market and take advantage of its technology and services leadership to help broadcasters and content owners address the convergence of video and mobility.”

By assembling a portfolio of managed service providers and highlighting efficient monetization of TV content, Ericsson appears to be in the process of creating an integrated provider that can help broadcasters and media companies manage the complexities of television playout and asset monetization for both linear and multi-platform content.

“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.”

Ericsson says that after the deal closes, Red Bee will be incorporated into Ericsson’s Global Services business unit, and the UK will become a global media hub for Ericsson. The company will have more than 4,000 employees based in the UK, with more than one-third working in the media services business.

The closing of the acquisition is subject to approval from relevant regulatory authorities and other contractual conditions.

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Related Content:

Press Release: Ericsson to acquire leading media services company Red Bee Media

More Broadcast Industry M&A: Technicolor Sells Playout & Services Business to Ericsson

Devoncroft Partners broadcast industry market research — The 2013 Big Broadcast Survey (BBS)

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