STOCKHOLM Dec 22 Ericsson sees more
tie-ups between telecom operators and media companies after AT&T
Inc's planned acquisition of Time Warner Inc,
offering some hope for the no-growth telecom equipment gear
maker, its media chief told Reuters.
* Per Borgklint said the industry will likely see more such
acquisitions as operators hunt for more content while media
outlets seek more efficient ways to reach clients.
* AT&T's purchase of Time Warner will have a positive effect
on Ericsson in the long term though in the shorter term it may
lead to slower decision-making, Borgklint said in an interview.
AT&T is Ericsson media's biggest customer among telecom firms.
* "It'll be up to us to capitalise on it, but it's in
general very positive that they have a great interest where we
are active," he said.
* Borgklint said the business is a good fit for the firm due
to sales and technical synergies with its networks and services
* Ericsson's media business eyes turning break even in terms
of profit in the second half of 2017, thanks to a push into new
Internet-based cloud solutions.
* Ericsson, which has seen core revenue fall for the past
three years, has predicted annual growth of around 10 percent
for its media unit for the next couple of years, in line with
the market which is fragmented with many competitors in
different niches. The division makes up 5 percent of Ericsson's
* The Silicon Valley-based executive said sales growth in
media will be driven by a move from traditional broadcast media
to individualised, increasingly on-demand media consumption by
mobile users on the go with their phones or tablets.
(Editing by Mia Shanley and Eric Auchard)