Net Insight divests Sye business to AmazonFriday, January 3rd, 2020
Net Insight divests its Sye business to Amazon
STOCKHOLM, Sweden — Net Insight has closed the transaction to divest Sye, its consumer streaming business, to Amazon (NASDAQ:AMZN) for approximately SEK 350 million in cash. The transaction is effective from today.
As announced on December 17, 2019, Net Insight signed an agreement to divest the Streaming Solution business area (Sye). The Sye technology solves fundamental issues for B2C streaming distribution and Amazon has already deployed Sye in some of its live streaming services as a customer.
With the close of this transaction, 100% of the shares in the wholly owned Sye business subsidiary, which holds all relevant IPRs, contracts and about 30 employees and consultants have been transferred to Amazon. The estimated net profit of the transaction will be some SEK 200 million in the first quarter of 2020.
The divestment allows Net Insight to increase focus and investments in its core B2B Media Networks business area and competencies gained while developing and launching Sye, for example, related to virtualized software and cloud-based technology, will continue to benefit the company. Among other things, the increased focus and investments involve accelerated efforts to drive growth in attractive market segments like Internet-based transport, remote/distributed production and cloud networking solutions.