Ericsson have today confirmed that after announcing interest in acquiring the company in July 2013, Red Bee Media is to become a part of the networking communications giant.
The agreement sees 1,500 employees of Red Bee join the Broadcast Services business of Ericsson, creating a 'major global media hub' for the business in the UK.
Magnus Manderson, Executive vice president and head of Ericsson’s Global Services business unit said: “We’re very happy to welcome our new employees to Ericsson and are confident they will help to take our broadcast services business to the next level and extend our global presence.”
Red Bee already has facilities in the UK, France, Germany, Spain and Australia and currently provides playout, access services, channel branding and promos for the likes of the BBC, Channel 4, BT Sport and UKTV.
In a statement, Ericsson said its TV and media strategy is “to help content owners, broadcasters and TV service providers evolve to meet consumer demands for video experiences on any device, anytime, anywhere”.
The deal has previously come under scrutinisation by the Competition Commission, but was cleared in March after deeming that competition in the playout sector would not be reduced.
Red Bee Media – formerly BBC Broadcast – was sold to Australia’s Macquarie Capital Alliance Group for £166m in 2005. Ericsson purchased Red Bee from Creative Broadcast Services Holdings, an entity controlled by Macquarie.
DTG Staff | 12.05.2014