Ericsson’s MediaKind divestment delayed to year-end

Ericsson has pushed back the divestment of its majority stake in MediaKind to the end of the year. having originally planned to close the transaction in the third quarter.

Ericsson has partnered with One Equity Partners, which will become the majority owner of MediaKind – formerly Ericsson’s Media Solutions business.

“The carve-out of MediaKind from Ericsson’s global structure to create a new company, jointly owned with One Equity Partners, is proceeding with great diligence,” said Ericsson in a statement.

“With employees and customers located all over the world, the establishment of appropriate operating entities is necessary to begin operations as an independent company and to ensure a smooth transition for customers and employees.

“This process has been more complex than originally expected and is now expected to be completed around year end instead of Q3 2018 as previously communicated.”

Ericsson announced in July that Ericsson Media Solutions was rebranding as MediaKind. The new entity recently exhibited at IBC and Ericsson said it is developing in line with its new business plan.

Ericsson plans to divest a 51% majority stake in MediaKind to private-equity outfit One Equity Partners.