Tata Communications announced on Thursday that it has entered into a definitive agreement to acquire The Switch Enterprises LLC, a New York-based video production and transmission services provider, through its wholly-owned international subsidiary Tata Communications (Netherlands) B. V. Tata Communications will gain a strong foothold in the US media and entertainment market as a result of this acquisition.
It will pay Rs 485.3 crore in cash for a 100% equity stake in The Switch Enterprises, also known as ‘Switch,’ and certain international assets.
Apart from the equity stake, Tata Communications will acquire assets from Switch Enterprises’ subsidiaries in Canada, the United States, and the United Kingdom.
The Tata company announced plans to expand its portfolio into live video production and to position itself as an end-to-end media ecosystem player.
Tata Communications will assist the US company in reaching over 190 countries and territories, while also gaining access to The Switch’s cutting-edge live production capabilities.
According to Tri Pham, Chief Strategy Officer at Tata Communications, the merger will create a “formidable powerhouse” in the global media ecosystem. “Moreover, The Switch production infrastructure as a service will enable Tata Communications customers to accelerate the adoption of remote production from any event anywhere in the world,” Pham added.
According to Dhaval Ponda, Tata Communications’ Global Head of Media & Entertainment Business, the global media and entertainment industry is undergoing 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 that include live and scheduled television programming, leveraging pre-recorded and filed videos for new content creation, and 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. “We will accelerate this journey with Tata Communications by providing stability, investment, and vision in support of future growth,” said Eric Cooney, CEO and President of The Switch.
Switch was established in 1990. It creates and distributes live content to any medium, including linear, on-demand, and streaming platforms. It made Rs 674.8 crore in revenue last year.