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Ericsson’s sale of MediaKind stake delayed to year end

Deal was previously expected to go through in Q3

Ericsson has announced the sale of its majority stake in MediaKind has been delayed until “around year end”.

The company announced in January that it had sold 51 per cent of its Media Solutions business to private equity company One Equity Partners.

At that point, Ericsson said it expected the deal to close in the third quarter of 2018.

In a statement highlighting the progress in setting up new company Mediakind, Ericsson said the the process of establishing appropriate operating entities necessary to beginning operations as an independent company has been more complex than originally expected, which has led to the delay in the completion of the sale.

The divestment of MediaKind is estimated to create additional expenses of SEK 0.3 billion for Ericsson in the second half of 2018. Rather than these falling only in Q3, they will be equally distributed over Q3 and Q4, the company said.