Ericsson had been looking forward to extending its digital media influence and boost its broadcast services. That is the reason behind its acquisition of UK-based Red Bee Media.
On the lookout to beef up its business, the Swedish giant Ericsson has purchased Red Bee Media. The amount of money that passed between them remains a secret. The merger will benefit Ericsson immensely. Red Bee’s net total staff of 1500 is spread throughout the world. These places include France, Germany, Spain and Australia and UK where headquarter of the compnay exists. The addition of these extra employees to Ericsson’s list makes its UK staff a grand total of 4000.
Don't Miss: Incredible Pokemon Gifts
Furthermore, a third of its British force is employed in media jobs. The country is all set to become Ericsson’s global media center. Ericsson’s basic function is providing services for operators. It also deals in creative content and media. The main objective is helping out consumers in the delivery of services and products that last. In particular, video services on mobiles are expected to grow by 60% within the next five years. Meanwhile, the foundation stone for Red Bee was laid in 2005. It started out as a media services company. TV production, content marketing and multimedia content provision were just some of the services lent by the firm. Among the long list of clients could be included: ESPN, BBC, Channel 4 and Microsoft.
This takeover of Red Bee Media by Ericsson reflects its supplementation of its hardware and software businesses in tandem. The Red Bee acquisition comes two months after the purchase of Microsoft’s IPTV by Ericsson. By selling off IPTV, Microsoft could concentrate exclusively on its Xbox console. Ericsson also opted out of its mobile joint venture with Sony. It also split a joint agreement with ST Micro. Partly the Red Bee acquisition was simply for broadcasting purposes. And Ericsson happens to be the biggest maker of wireless networks. It was a perfect match.
Don't Miss: The Best HDR TVs
Sony Ericsson was once a major manufacturer of mobile phones. Then the market took a downward swing as people shifted to better alternatives such as tablets. With that Sony Ericsson’s luck took a different turn. Since than Ericsson has distanced itself from its partner Sony and has looked elsewhere for better prospects. Among the greener pastures it had aimed for was Red Bee Media. Now that Ericsson has obtained what it desired, its happiness knows no bounds. The future appears rosy once again. Finally, things are beginning to pick up pace once again.