Ericsson Announces Intention To Acquire A Media Content Supplier, Shares Higher By 4%

Shares of Ericsson (ADR) ERIC were trading higher by more than 4 percent ahead of Tuesday's opening bell after the company announced its intention to acquire FYI Television, a TV metadata and entertainment image content expert. FYI Television accumulates and distributes TV entertainment content and linear scheduling data for more than 9,000 TV networks daily. Ericsson recently established a US broadcast and media services hub that provides closed captioning services to broadcasters around the world. The company has further plans to roll out video description services over the coming months. Ericsson noted that its research has shown that 50 percent of linear TV viewers say they "can't find good programming to watch on a daily basis." The company added that it will combine FYI's market expertise in metadata, conversion and integration services with its leading position in these areas in Europe to create a "powerful global force in content discovery." Magnus Mandersson, Executive Vice President and Head of Business Unit Global Services at Ericsson, says: "As the TV industry evolves and viewing behavior changes, we believe that high-quality, rich metadata will be a key component for a personalized TV experience. Combined with our capabilities in TV platforms and content discovery, we will be able to help our customers to improve the video experience and identify new revenue opportunities. FYI Television's expertise and customer base in the US is a great complementary fit for Ericsson and will be an integral part of our growth strategy. It will strengthen our position as one of the leading providers of media services in the world."