Continued M&A in the telecoms and media sectors opens up an opportunity for Ericsson, according to Per Borgklint, head of the troubled vendor’s media unit.
In an interview with Reuters, Borgklint said the company can directly benefit from deals similar to the AT&T/Time Warner deal, which is currently undergoing the regulatory approval process.
The company, which counts AT&T among its customers, believes it is well positioned to grow this segment of its business as operators look to add content to their overall service and producers attempt to find more efficient ways to reach consumers.
Ericsson executives have been bullish on the positive impact of cross-sector M&A since news of the AT&T deal broke earlier this year.
At the company’s Capital Markets Day in November, Interim CEO Jan Frykhammar highlighted these deals validated the company’s own strategy based around enabling increased video transport on operator networks.
In April, prior to the departure of CEO Hans Vestberg, the company pointed towards the media division as one of its key future growth areas. However, according to reports in Reuters and the Financial Times, the division remains unprofitable and some previous Ericsson executives believe the company should sell the division.