Switch Enterprises LLC, a New York-based provider of video production and transmission services, will be acquired by Tata Communications through its wholly-owned foreign subsidiary Tata Communications (Netherlands) B. V, the company said on Thursday. Tata Communications will join the US media and entertainment business with a firm presence thanks to this acquisition.
For a total cash value of Rs 485.3 crore, it will purchase a 100% equity position in The Switch Enterprises, better known as "Switch," as well as a number of overseas properties. The acquisition's completion will be subject to regulatory approvals. Within 4-6 months, the acquisition is anticipated to be finished, or as soon as practical after that.
In addition to the stock holding, Tata Communications will buy the Canadian, American, and British subsidiaries of Switch Enterprises' assets.
The Tata corporation announced that it would expand its line of business to include live video creation in order to establish itself as a player in the entire media ecosystem.
Tata Communications will let the US company reach more than 190 countries and territories thanks to this acquisition, and it will also have access to The Switch's cutting-edge live production capabilities.
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 filmed videos for new content creation as well as all post-production,” he said.
In 1990, Switch was established. It creates and distributes live content to all platforms, including those that are linear, on-demand, and streaming. It earned Rs 674.8 crore in sales the previous year.