Ericsson has concluded the strategic review of Media Solutions and Red Bee Media. While Ericsson will retain 49% of the shares in Media Solutions, One Equity Partners joins as new majority owner. It was decided that Media Solutions assets and staff would transfer to an independent company upon closing, around Q3 2018.
In the review, Ericsson has evaluated different opportunities for both units, Media Solutions and Red Bee Media, including partnerships, divestments, and a continued in-house development, based on what generates the best long-term value for Ericsson.
As a first step in assessing strategic opportunities, Ericsson has implemented performance improvement programmes while continuing to invest in the respective business. Both units have reportedly made progress during 2017.
Commenting on the review, Börje Ekholm, President and CEO, 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.”
Ericsson will continue to develop Red Bee Media as an independent and focused media services business, with the execution of the performance improvement and legal separation activities, initiated in 2017, as top priorities.