Ericsson has hired banks to explore a sale of its media business, people with knowledge of the matter told Bloomberg. Ericsson is working with Morgan Stanley to consider a sale of its media solutions business, and the company hired Goldman Sachs to find a buyer for its broadcast and media services unit, the report said. The businesses have reportedly attracted interest from private equity firms as well as technology and media companies.
The company said already in March that it was reviewing its media activities, as part of a new strategy to refocus on its core business of telecom network equipment. Media was a few years ago considered a new growth area for the company, fed by a string of acquisitions like Red Bee Media and Microsoft's TV business, but the operations have failed to live up to the promise. The activities have estimated annual sales of USD 1.05 billion and could sell for around USD 500 million based on Technicolor's valuation, Bloomberg said.
