Tata Communications to acquire US-based Switch Enterprises for Rs 485.3 crore
Tata Communications will acquire a 100 per cent equity stake in The Switch Enterprises – also referred to as ‘Switch’ – and certain international assets for a value of Rs 485.3 crore in cash.
- Dec 22, 2022,
- Updated Dec 22, 2022 8:28 AM IST
Tata Communications announced on Thursday that it has entered into a definitive agreement through its wholly-owned international subsidiary Tata Communications (Netherlands) B. V to acquire New York-based video production and transmission services provider, The Switch Enterprises LLC. With this acquisition, Tata Communications will gain a strong foothold into the US media and entertainment market.
It will acquire a 100 per cent equity stake in The Switch Enterprises – also referred to as ‘Switch’ – and certain international assets for a value of Rs 485.3 crore in cash. The closing of the deal will be dependent on regulatory approvals. The acquisition is expected to be completed within 4-6 months or as soon as possible thereafter.
Tata Communications will, apart from the equity stake, acquire assets of the subsidiaries of Switch Enterprises based out of Canada, the US and the UK.
The Tata company said that it will extend its portfolio into live video production and aims to be positioned as an end-to-end media ecosystem player.
With this acquisition, Tata Communications will support the US company to reach over 190 countries and territories, while getting access to The Switch’s state-of-the-art live production capabilities.
Tata Communications’ Chief Strategy Officer Tri Pham said that the combination of the companies will create a “formidable powerhouse” in the global media ecosystem. “In addition, The Switch production infrastructure as a service will allow Tata Communications customers to accelerate adoption of remote production from any event around the world,” said Pham.
Dhaval Ponda, Global Head of Media & Entertainment Business, Tata Communications said that the global media and entertainment industry is at a once-in-a-generation digital transformation. “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,” he said.
“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,” said Eric Cooney, CEO and President, The Switch.
Switch was founded in 1990. It produces and delivers live content to any outlet including linear, on-demand and streaming platforms across any medium. It saw a revenue of Rs 674.8 crore last year.
Also read: Tata-owned BigBasket eyes IPO by 2025 after $200-mn fundraise at $3.2-bn valuation: Report
Tata Communications announced on Thursday that it has entered into a definitive agreement through its wholly-owned international subsidiary Tata Communications (Netherlands) B. V to acquire New York-based video production and transmission services provider, The Switch Enterprises LLC. With this acquisition, Tata Communications will gain a strong foothold into the US media and entertainment market.
It will acquire a 100 per cent equity stake in The Switch Enterprises – also referred to as ‘Switch’ – and certain international assets for a value of Rs 485.3 crore in cash. The closing of the deal will be dependent on regulatory approvals. The acquisition is expected to be completed within 4-6 months or as soon as possible thereafter.
Tata Communications will, apart from the equity stake, acquire assets of the subsidiaries of Switch Enterprises based out of Canada, the US and the UK.
The Tata company said that it will extend its portfolio into live video production and aims to be positioned as an end-to-end media ecosystem player.
With this acquisition, Tata Communications will support the US company to reach over 190 countries and territories, while getting access to The Switch’s state-of-the-art live production capabilities.
Tata Communications’ Chief Strategy Officer Tri Pham said that the combination of the companies will create a “formidable powerhouse” in the global media ecosystem. “In addition, The Switch production infrastructure as a service will allow Tata Communications customers to accelerate adoption of remote production from any event around the world,” said Pham.
Dhaval Ponda, Global Head of Media & Entertainment Business, Tata Communications said that the global media and entertainment industry is at a once-in-a-generation digital transformation. “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,” he said.
“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,” said Eric Cooney, CEO and President, The Switch.
Switch was founded in 1990. It produces and delivers live content to any outlet including linear, on-demand and streaming platforms across any medium. It saw a revenue of Rs 674.8 crore last year.
Also read: Tata-owned BigBasket eyes IPO by 2025 after $200-mn fundraise at $3.2-bn valuation: Report