Ericsson has inked an agreement with Microsoft to acquire
its TV solution Mediaroom business that will catapult it into becoming a major
provider of IPTV and multi-screen solutions with a market share of over 25%.
The deal is expected to close in the second half of 2013.
Terms of the deal weren't disclosed.
"Ericsson's vision of the Networked Society foresees 50
billion devices to be connected via broadband, mobility and cloud," notes Per
Borgklint, senior VP and head of business unit support solutions at Ericsson,
in a statement. "Future video distribution will have a similar impact on
consumer behavior and consumption as mobile voice has had. This acquisition
contributes to a leading position for Ericsson with more than 40 customers,
serving over 11 million subscriber households. In addition, Ericsson will be
powered with senior competence and some of the most talented people within the
field of IPTV distribution."
Mediaroom, which is situated in Mountain View, Calif., employs
more than 400 people worldwide.
Mediaroom will be incorporated into Business Unit Support
Microsoft Mediaroom is widely used by telcos around the
world for their IPTV offerings. Current clients include AT&T U-verse,
Entertain of Deutsche Telekom, Telefonica, TELUS Optik TV and Swisscom and
Mediaroom-TV services are offered on more than 22 million set top boxes
deployed around the world, the companies report.