Net Insight sells its Sye streaming solution area to Amazon
Net Insight has closed the transaction to divest Sye, its consumer streaming business, to Amazon (NASDAQ:AMZN) for approximately SEK 350 million in cash ($ 37 million). 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 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.
According to the press release, “the divestment allows Net Insight to increase focus and investments in its core B2B Media Networks business area”. In addition, “competencies gained while developing and launching Sye, for example, related to virtualized software and cloud-based technology, will continue to benefit the company”.