Global Crossing's (Nasdaq: GLBC) move to acquire Genesis Networks, a video transmission services provider, illustrates that video service is yet another key piece of its invest and grow strategy.
Under the terms of the agreement, Global Crossing will acquire Genesis for $27 million including $15 million in debt.
While not a novice in the video transport business, Global Crossing wants to get a bigger piece of the video services business--one that Infonetics Research forecasts will top $250 billion in 2014.
"The proliferation of HD and 3D video will soon outstrip the capacities of legacy technologies, making media-centric global fiber optic networks like ours the most viable option for broadcasters, producers and distributors," said John Legere, chief executive officer of Global Crossing.
In acquiring Genesis Networks, Global Crossing will get a purpose-built network that reaches 70 cities on five continents with 225 on-net locations. Global Crossing will be able to extend Genesis' video services to various vertical market segments including healthcare, cinema, music, gaming, government and distance learning to over 700 cities in addition to Latin America.
Among its many highlights, Genesis Networks provided media services for high profile events such as the Olympics, World Cup, international auto racing, Grand Slam tennis tournaments, major golf tournaments, the U.S. Presidential elections, and the G8 and G-20 Summits.
When the acquisition is complete, Global Crossing will run Genesis as a separate business unit inside of the company. Current Genesis Networks president and CEO Mike Antonovich of Genesis Network will become managing director of the new unit.
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