Ericsson CEO sees more multimedia buys: report
STOCKHOLM (Reuters) - Mobile networks giant Ericsson ERICb.St expects to make more acquisitions to boost its multimedia arm, the chief executive of the company was quoted as saying on Thursday.
Carl-Henric Svanberg also told Svenska Dagbladet newspaper that he was upbeat about prospects for multimedia, which offers services such as television, though network equipment would remain the company's largest business over the next five years.
"There will be more acquisitions on the multimedia side. We do not need to take a breath just because we have made several acquisitions," he said.
Ericsson has recently bought Norwegian digital broadcast systems maker Tandberg Television and IP messaging components company Mobeon as part of its plan to build up multimedia.
It has also bought companies to increase its punch in the fixed-networks business and Svanberg told the newspaper that he saw no gaps in that part of its activities now.
While the networks business would remain the largest, he saw IP technology increasing in importance in the future.
"Toward the end of this period (the next five years) multimedia will really have taken off," he said.
He said Ericsson's recent acquisitions were helping it catch up with rival Alcatel-Lucent ALU.PA in television and fixed networks and that his company was benefiting from the merger of the two competitors into one firm.
This was because many operators wanted to have two system providers, meaning Ericsson had a new window of opportunity.
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