) is planning to acquire U.K.-based media company Red Bee Media.
Through this acquisition, Ericsson plans to expand its broadcast
services and thereby extend its technology to broadcasters to
merge video and mobility. Post-acquisition, the business will be
included in Ericsson's Global Business Unit.
Red Bee Media's offerings include media asset management,
digital video publishing, metadata services, multilingual access
services and creative services to major broadcasters and
broadband platforms. Red Bee Media is the largest editorial
metadata provider in Europe and its high-quality play out
services is very popular. The company delivers over 100,000 hours
of subtitling per year for broadcasters.
Banking on this acquisition Ericsson expects to create value
for its broadcasters by making digital content easily and
conveniently accessible. Ericsson plans to capture the growing
opportunities in the television and media industry.
The industry is continuously undergoing transformation as
consumers these days demand rich, interactive, and
anytime-and-anywhere entertainment. Hence, the convergence of
communications, broadband and media technologies along with the
use of IP and mobile networks are able to generate and deliver
such experiences, thereby creating new opportunities in the
Video traffic presently has been showing a strong momentum in
the mobile networks and Ericsson is addressing the need of both
broadcasters and telecom operators through its technology
expertise and services capabilities. According to Ericsson
Mobility Report June 2013, video is the single-biggest
contributor to mobile network traffic and this is expected to
grow 60% annually until 2018 end.
Ericsson is a leading provider of managed services for telecom
operators over the past 15 years. Recently, the company has also
used its successful business model across other industries, such
as utilities, transportation and the TV industry.
Ericsson has been making strategic acquisitions to strengthen
its position. Most recently, Ericsson signed an agreement with
) to acquire the latter's TV solution Mediaroom business for an
Through this acquisition, Ericsson intends to become the
leading provider of IPTV (Internet Protocol TV) and multi-screen
solutions. Prior to this, Ericsson acquired the telecom &
Media subsidiary of a France-based consulting company, Devoteam.
This acquisition was in line with Ericsson's services strategy to
expand its IT capabilities.
Ericsson currently has a Zacks #1 (Strong Buy). Other wireless
equipment stocks worth a look are
Ubiquitous Networks Inc
), having a Zacks Rank #1 (Strong Buy), and
Mitel Networks Corporation
) with a Zacks #2 Rank (Buy).
ERICSSON LM ADR (ERIC): Free Stock Analysis
MITEL NETWORKS (MITL): Free Stock Analysis
MICROSOFT CORP (MSFT): Free Stock Analysis
UBIQUITI NETWRK (UBNT): Free Stock Analysis
To read this article on Zacks.com click here.