iNDICA NEWS BUREAU-
Tata Communications, a global digital ecosystem enabler, has signed an agreement to acquire The Switch Enterprises LLC. Through its wholly-owned international subsidiary Tata Communications (Netherlands) B.V., the company has entered into a definitive agreement to acquire New York-headquartered The Switch, a leading global end-to-end live video production, and transmission services provider with a reach to top-tier sporting venues in North America.
With this acquisition, Tata Communications hopes to gain a strong foothold in the Americas media and entertainment market, extend its portfolio into live video production and become uniquely positioned as an end-to-end media ecosystem player in the entire content development value chain globally.
Under the terms of the agreement, Tata Communications will acquire a 100% equity stake in The Switch Enterprises, LLC, and certain of its international assets for a value of approximately US $58.8 million (₹486.3 crore) in a cash-only transaction. The closing of the transaction is dependent upon regulatory approvals.
With both companies coming together, Tata Communications will support The Switch customers with global reach to over 190 countries and territories and The Switch will bring state-of-the-art live production capabilities helping organizations to produce high-quality, more immersive content faster and more efficiently.
“The 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 media owners and enterprises harness emerging digital consumption patterns to drive innovation and disruption. We will continue to provide the high level of services we are rightfully known for,” The Switch said in a statement.
Announcing the acquisition, 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 the adoption of remote production from any event around the world.”
Dhaval Ponda, Global Head of Media & Entertainment Business, Tata Communications added, “The global media & entertainment industry is at a once-in-a-generation digital transformation driven by a fundamental change in consumer consumption behaviors. 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.”
On completion of the transaction, The Switch Enterprises will join the Media and Entertainment Services (MES) business of Tata Communications under Dhaval Ponda.
Speaking on the occasion, Eric Cooney, President, and CEO of The Switch said, “The team at The Switch has worked hard creating a market-leading live production and transmission offering in the US and beyond. We are extremely proud of our achievements and the trust that Tier 1 media companies place in our services. 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 maximize their lucrative content. With Tata Communications we will accelerate this journey providing stability, investment, and vision in support of future growth. I am excited for the future of The Switch and the opportunities that this brings to our team and customers.”