With an eye on the massive US media and entertainment market, Tata Communications has entered into a definitive agreement to acquire the New York-based The Switch Enterprises.
The Switch is a leading global end-to-end live video production and transmission services provider with reach to top-tier sporting venues in North America.
Tata Communications will acquire 100 percent equity stake in The Switch and certain of its international assets for a value of approximately $58.8 million (AED216 million) in a cash transaction to be executed through Tata Communications (Netherlands) BV, its wholly owned international subsidiary.
Apart from the equity stake, Tata Communications will also acquire assets of The Switch subsidiaries based out of Canada, the US and the UK. It will help extend Tata Communications’ portfolio into live video production and help position the company as an end-to-end media ecosystem player.
Tri Pham, Chief Strategy Officer, Tata Communications, said: “Our combined forces of The Switch’s strong presence in North America and Tata Communications’ global position will create a formidable powerhouse in the global media ecosystem helping enterprises harness emerging digital consumption patterns to drive innovation and disruption.
“In addition, The Switch production infrastructure as a service model will allow Tata Communications customers to accelerate adoption of remote production from any event around the world.”
Dhaval Ponda, Global Head of Media and Entertainment Business, Tata Communications added: “The global media and entertainment industry is at a once-in-a-generation digital transformation driven by a fundamental change in consumer consumption behaviours.
“Tata Communications is already helping some of the largest global sports federations, broadcasters and OTT platforms manage this disruption through our next generation digital media platform. With The Switch team, we will now be able to develop holistic, scalable solutions encompassing live and scheduled programming for television, leveraging pre-recorded and filed videos for new content creation as well as all post-production.
“The Switch and Tata Communications teams, together will help the industry evolve to the next level of at-venue and at-home fan engagement.”
The closing of the deal will be dependent on regulatory approvals. The acquisition is expected to be completed within 4-6 months.
Founded in 1991 and headquartered in New York, The Switch has been connecting viewers around the world to live events for almost three decades, bringing them the content they want across linear TV, on-demand and streaming platforms – on multiple screens and devices.
Eric Cooney, President and CEO, The Switch, added: “As the media industry evolves, The Switch has an ever-larger role to play in the future of live sports and entertainment and in helping our customers maximise their lucrative content. With Tata Communications we will accelerate this journey providing stability, investment and vision in support of future growth.”
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