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Ericsson has partnered with One Equity Partners to transfer majority ownership of its Media Solutions business to the private equity firm, the company said in a statement. Ericsson will retain a 49 percent stake in the unit, which will operate as an independent video technology company with dedicated resources for innovation and growth. The transaction terms remain confidential and closing is expected during the third quarter of 2018 subject to regulatory approvals, according to the announcement.
MENA Broadcast, Media Technology & Satellite News – BroadcastPro ME reported that the move concludes a strategic review of both Media Solutions and Red Bee Media that weighed partnerships, divestments and continued internal development. Performance improvement programmes launched in 2017 delivered measurable progress across both units while Ericsson maintained ongoing investment. Börje Ekholm, president and CEO of Ericsson, said, “Media Solutions and Red Bee Media are leading providers of media products and services, and with the performance improvements that are currently being implemented, we see future upsides to both businesses.”
The Ericsson statement indicated that Media Solutions employees, contractors, specified assets and liabilities will move to a newly formed independent company upon closing. One Equity Partners brings deep expertise in media and telecom investments that will support expanded technology development for the unit. Ericsson will keep Red Bee Media as a separate independent media services operation and has set execution of its performance initiatives as a top priority.
A July 2018 follow-up report by BroadcastPro ME noted that the unit was rebranded MediaKind effective from July 10 while retaining its full portfolio of end-to-end media technology solutions. The rebranded company integrated legacy providers that included Envivio, Fabrix, HyCGroup and Tandberg Television. MediaKind at the time served more than 900 cable, satellite, telecom and broadcaster clients globally.
Global broadcast and media technology markets have shown sustained expansion since the transaction, with MENA operators accelerating adoption of cloud-native and IP-based production systems, according to sector assessments. The independent structure enabled MediaKind to form new alliances and accelerate product roadmaps separate from Ericsson’s core telecommunications business. Ericsson continued reporting its retained share of the business within its Other segment after the change.
The divestment produced no significant restructuring charges, the original Ericsson announcement stated. Both parties emphasised their commitment to ensuring a smooth transition for all employees, customers, partners and suppliers involved. The completed deal positioned the former Media Solutions unit as a focused pure-play provider backed by committed long-term capital.
