Ericsson to buy Microsoft Mediaroom

Ericsson will buy Microsoft’s Mediaroom business, making the company one of the largest IPTV and multi-screen solution providers, with a reported market share exceeding 25 percent, Ericsson announced April 8.

Terms of the purchase, which is expected to close in the second half of the year, were not immediately available.

“Ericsson’s vision of the networked society foresees 50 billion devices to be connected via broadband, mobility and cloud,” said Per Borgklint, SVP and head of Business Unit Support Solutions at Ericsson.

“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 more than11 million subscriber households.”

Details about the deal, which is expected to close in the second half of the year, were not immediately available.

According to a press statement announcing the acquisition, the media solution portfolio of Ericsson in the TV and video space, along with an increased focus on consumer needs, will serve as the foundation for providing services to end users. The significance of video distribution capabilities will only increase going forward as more and more LTE networks are deployed and the number of smartphone users grows.

Some of the TV service providers that have deployed Microsoft Mediaroom include AT&T with U-verse, Deutsche Telekom with Entertain, Telefonica, TELUS with Optik TV and Swisscom. Currently more than 22 million set-top boxes are deployed in the Americas, EMEA and APAC nations with Mediaroom-powered TV services.