Red Bee Media's 1,500 "highly skilled employees," along with media services and operations facilities in the U.K., France, Germany, Spain and Australia will "further strengthen Ericsson's broadcast services business," according to the company. With 1,240 of Red Bee Media employees based in the U.K., Ericsson's U.K. business would grow to around 4,000 employees if the acquisition goes through, and with more than one-third working in the media services business, the U.K. would become a global media hub for Ericsson.
Ericsson first entered the media services business in 2007, and expanded the unit in 2012 with the acquisition of Technicolor's Broadcast Services Business.
In discussing the decision to acquire Red Bee Media, founded in 2005, Ericsson Executive Vice President and head of business unit global services Magnus Mandersson commented, "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."
Red Bee's media services include media asset management, playout and digital video publishing, metadata services, multilingual access services and creative services to major broadcasters and broadband platforms. It delivers more than 100,000 hours of subtitling per year for leading broadcasters.
The transaction is subject to regulatory approval and customary closing conditions. Financial terms were not disclosed.