The Switch of New York acquired for $58.8 million, says Tata Comm
Tata Communications has entered into a definitive agreement through its wholly owned international subsidiary Tata Communications (Netherlands) B.V. to acquire The Switch Enterprises LLC, which is headquartered in New York with reach to top tier sporting venues in North America.
With this transaction, Tata Communications will gain a strong foothold into 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 has agreed to acquire 100% equity stake in The Switch Enterprises, LLC, and certain of its international assets for a value of approximately US$58.8 million in a cash (subject to customary closing adjustments) 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 organisations to produce high quality, more immersive content faster and more efficiently.
Announcing the acquisition, Tri Pham, Chief Strategy Officer, Tata Communications, said on 22 Dec 2022, “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 adoption of remote production from any event around the world.”
Dhaval Ponda, Global Head of Media & Entertainment Business, Tata Communications, elaborated, “The global media & entertainment industry is at a once-in-a-generation digital transformation driven by a fundamental change in consumer consumption behaviours. 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.”
Speaking on the occasion, The Switch President & CEO Eric Cooney 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 maximise 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.”
On completion of the transaction, The Switch Enterprises will join the Media and Entertainment Services (MES) business of Tata Communications under Dhaval Ponda.
The Switch is a leading global end-to-end live video production and transmission services provider in North America. fiinews.com
