Ericsson's attempts to sell off underperforming parts of its business have had mixed results, with the sale of a majority stake in its Media Solutions arm being offset by a lack of convincing offers for Red Bee Media.

Ericsson, which has been assessing options for both businesses since March last year, also announced another internal restructure.

Private equity firm One Equity has taken a 51 percent stake in video technology company Media Solutions for an undisclosed fee.

Ericsson, which retains 49 percent ownership, said a new independent company would be created in the third quarter once regulatory approval had been achieved.

Ericsson CEO Börje Ekholm said: “This [deal] allows us to capture the upside of the business while at the same time taking active part in the expected consolidation of the industry.”

However, the vendor has been unable to shift its Red Bee Media division after the bids it received “did not reflect the value of the business”.

“We will develop the business as an independent entity within Ericsson, building on the improved operations,” Ekholm said.

Ericsson said it had initiated a performance improvement program at Red Bee last year, which had resulted in a “significantly improved” Q4 adjusted operating loss.

Full-year revenues came in at SEK2.5 billion, which Ericsson described as “stable”.

The news is a blow to Ekholm, who was hoping to raise funds from sales to boost Ericsson’s profitability.

The company reported an annual loss of SEK35.1 billion for 2017.

Meanwhile, Åsa Tamsons has been hired from McKinsey to run a renamed Emerging Business division.

It replaces the Technology & Emerging Business arm, unveiled less than a year ago, and will focus on innovation and new business development, particularly within the IoT and distributed cloud solutions.

It will also include the company’s CTO office and Research divisions.

Ericsson CMO Helena Norrman told European Communications that the previous name had “sent a signal that business was not the focus [of the division]”.

Norrman herself has been given an expanded brief, taking on Sustainability & Public Affairs alongside Marketing & Communications.

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