Though Tata Communications opened 0.5% higher at 1277 and even going up to an intraday high at Rs.1292.50, it soon slipped into the red, going down to Rs.1250 and continues to trade in the negative.
The company announced today morning that it will acquire New York-based end-to-end live video production company, The Switch Enterprises, in an all-cash deal for Rs 486 crore.
The company will acquire the assets of the subsidiaries of Switch Enterprises, LLC based out of Canada, the United States of America and the United Kingdom. Switch Enterprises, LLC, USA, along with its subsidiaries are collectively referred to as 'Switch'.
Tata Communications will support The Switch customers with global reach to over 190 countries and territories and The Switch will bring live production capabilities helping organisations to produce high quality immersive content faster and efficiently.
The market was happy with this news in the morning but it slipped into the red, reflecting the overall mood of the market.