In the review , Ericsson said it evaluated different opportunities for both units , including partnerships , divestments , and a continued inhouse development , based on what generates the best long-term value for Ericsson .

The Ericsson unit had seen a number of acquisitions , including Tandberg Television and the Microsoft Mediaroom IPTV middleware operation . It completed its acquisition of Red Bee Media from Creative Broadcast Services Holdings – an entity controlled by Macquarie Advanced Investment Partners in May 2014 . Red Bee Media was formerly BBC Broadcast Limited . BBC Broadcast was created by the BBC in 2002 , by placing a range of BBC channel creation and channel management services under one roof .

Ericsson announced in November 2017 that it was renaming its Broadcast and Media Services business to its former Red Bee Media name .

“ It is apparent that Ericsson is struggling to sell off this asset ,” commented Paolo Pescatore , VP , multiplay and media , CCS Insight at the time . “ Many of its rivals are struggling

in light of the challenging and competitive landscape . Therefore ’ private equity could be the only realistic and viable option . However , strategically , content is proving to be a key battleground for all telcos which represents a significant step towards offering a suite of connected and smart home services . With this in mind , Ericsson was undoubtedly bringing together a strong suite of assets in TV . Moving forward , we expect to see rivals such as Huawei and Nokia place more focus on this area as a means of differentiating their offerings beyond connectivity .”

“ 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 ,” claimed Börje Ekholm ( above right ), president and CEO , Ericsson . “ We are confident that the direction we announce today will enable us to create the best longterm value , for both our customers and our shareholders .”

Ericsson has partnered with One Equity Partners , a private equity firm with deep expertise in media and telecom investments , to further develop Media Solutions . Ericsson will retain 49 % of the shares in the company . This structure is designed to establish Media Solutions as a leading independent video technology company with strong and committed financial support driving continued investment in innovation and growth . The terms of the transaction are confidential . Closing of the transaction is expected in Q3 2018 and is subject to customary closing conditions , including regulatory approvals .

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 .

“ Red Bee Media is already today a leading broadcast and media service provider , with a strong customer base among the top tier broadcasters and service providers ,” commented Steve Nylund , CEO , Red Bee Media . “ Our focus is now on improving and transforming Red Bee Media , in partnership with our customers , to enable our full potential as an independent and focused media services business .”