Ericsson acquisition, Samsung turnaround … 5 things to know today

1. Ericsson is boosting its fiber footprint with the acquisition of Abentel, a subsidiary of Spain’s Abengoa. Abentel’s assets, projects and roughly 500 employees will become part of Ericsson when the deal closes. Ericsson said those 500 professionals are “bringing a relevant set of skills to continue expanding in the growing field of fiber-related services.” The companies did not disclose the purchase price.
The rapid growth of mobile video on Wi-Fi networks is driving demand for fiber assets, according to Ericsson. The company’s announcement of the Abentel acquisition cited the most recent Ericsson Mobility Report, which found that 85% of data traffic generated by the use of smartphone video apps goes over Wi-Fi, mainly indoors. Ericsson acquired a carrier-grade Wi-Fi portfolio through its 2012 purchase of BelAir Networks, and more recently has struck a deal to resell HP-Aruba Wi-Fi solutions.
2. Samsung and LG are both projecting big operating profit increases. The two South Korean Android smartphone makers are expecting a combined $7.5 billion in operating profit for the second quarter, with $7 billion of that attributable to Samsung. The world’s largest smartphone maker appears to have hit a home run with its latest flagship, the Galaxy S7. Several reviews that compare the S7 to Apple’s iPhone 6s have favored the Samsung device.
Last year Samsung grew its sales volume in part by cutting prices, which led to shrinking profits for the company’s smartphone business. Now that trend seems to be reversing.
3. Sensors in Google’s self-driving cars are designed to detect hand signals made by cyclists on the road. The company’s latest report on autonomous cars said that Google is working on software that helps the vehicles “remember” what happens right after a cyclist uses a hand signal, so that the car can react faster the next time the sensor detects that signal.
4. Google said it has acquired a company called Anvato, which develops cloud-based video software. Anvato’s software for video encoding, editing and publishing is used by media giants like NBCUniversal, USA Network, Fox Sports and CBS Local Media. Anvato markets its solutions to broadcasters, pay-TV providers and live event producers.
5. Twitter is in talks with the National Basketball Association and Major League Soccer about streaming video. According to Recode, the social media company is asking the NBA and MLS about “acquiring digital streaming rights for content related to live sports and events.” The company also is said to be talking to media companies like Turner Broadcasting, which already hold the rights to stream many sporting events.
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