Competition Commission
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CC to investigate television playout services merger

The Competition Commission (CC) is to investigate the anticipated acquisition by Telefonaktiebolaget LM Ericsson (Ericsson) of Red Bee Media Limited (Red Bee Media).

The Office of Fair Trading (OFT) has referred the merger to the CC, which will decide whether the acquisition may be expected to result in a substantial lessening of competition.

Many broadcasters pay for linear playout services, which ensure that individual television programmes, advertising, and other television content are lined up and ready for broadcast, according to the programme schedule. Playout service providers also manage the fluctuations around the schedule according to the broadcaster’s wishes, for example in reaction to live sports.

Both Ericsson and Red Bee Media provide outsourced linear playout services to some of the largest broadcasters in the UK. Red Bee Media also provides a full suite of other ancillary services essential to supporting playout services and Ericsson provides certain ancillary services, mainly media logistics (converting tape content into digital format) and digital media services (provision of video on demand content with all the ancillary services).

The CC is expected to publish its final report by 16 March 2014.

The CC would like to hear from all interested parties, in writing, by no later than 21 October 2013.

To submit evidence, please email EricssonCreative@cc.gsi.gov.uk or write to:

Dan Cliffe
Inquiry Manager
Ericsson/Creative merger
Competition Commission
Victoria House
Southampton Row
LONDON
WC1B 4AD

Notes for editors

1. Ericsson (the acquirer) is a leading provider of telecommunications equipment and services to mobile and fixed network operators. In 2012, Ericsson acquired Technicolor Broadcast Services, a provider of broadcast chain services including television playout. Red Bee Media (the target) is one of the leading providers of broadcast services in the UK, in particular it is one of the leading suppliers of television playout services. Red Bee Media is wholly owned by Creative Broadcast Services Limited, which in turn is owned by Creative Broadcast Services Holdings (2) Limited.

2. The CC is an independent public body, which carries out investigations into mergers, markets and the regulated industries.

3. The Enterprise Act 2002 empowers the OFT to refer to the CC completed or proposed mergers for investigation and report which create or enhance a 25 per cent share of supply in the UK (or a substantial part thereof) or where the UK turnover associated with the enterprise being acquired is over £70 million.

4. The CC has a 24-week period in which it is required to publish its report, which may be extended by no more than eight weeks if it considers that there are special reasons why the report cannot be published within that period.

5. Further information on this inquiry, including the terms of reference and other key documents, as well as on the CC and its procedures, including its policy on the provision of information and the disclosure of evidence, can be obtained from the CC website at: www.competition-commission.org.uk.

6. Enquiries should be directed to Rory Taylor or Siobhan Allen or by ringing 020 7271 0242.

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