Ericsson considering sale of media and broadcast units
Swedish vendor has reportedly appointed banks as it looks to offload several business units and focus on its core business
Ericsson is looking to offload its media and broadcast businesses, appointing several banks to oversee a potential sale, according to reports.
Bloomberg cites people with knowledge of the matter who said the Swedish company is working with both Morgan Stanley and Goldman Sachs to offload its media solutions, and broadcast and media services units.
The report said the business units have already attracted interest from a number of companies in the private sector, along with businesses operating in the technology and media sectors.
The potential sale is part of a continuing overhaul at Ericsson which began with the appointment of current CEO Börje Ekholm. Ekholm replaced Hans Vestberg, who was ousted amidst falling revenues.
When he joined, Ekholm admitted he faced making some difficult decisions, with Ericsson confirming in March it was assessing its media activities as it looks to refocus on its core telco vendor arm.
The businesses have estimated annual sales of USD 1.05 billion and could sell for around $500 million, Bloomberg said.