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Monday, April 08, 2013
Ericsson Buys Microsoft IPTV Business

Ericsson said on Monday it had struck a deal to buy Microsoft's Mediaroom IPTV business, the IPTV platform deployed by TV operators around the world.

Ericsson said in a statement the deal would make the company, the world's biggest mobile networks maker, the leading provider of IPTV. Internet protocol television (IPTV) uses the same technology that powers the Internet to transmit multimedia content over telecom and cable networks.

The company, which did not disclose the purchase price, said it expected to close the deal during the second half of 2013. The deal was subject to regulatory approvals and other conditions.

"This acquisition is mutually beneficial and strategically aligned for both parties. Ericsson will continue to invest in the growth and success of Mediaroom to the benefit of customers, employees, and the industry. It allows Microsoft to commit 100 percent of its focus on consumer TV strategy with Xbox," said Yusuf Mehdi, Corporate Vice President of Marketing, Strategy and Business for the Interactive Entertainment Business at Microsoft.

With the sale of Mediaroom, Microsoft is dedicating all TV resources to Xbox in order to make it the premium entertainment service that delivers all the games and entertainment - whether on a console, phone, PC or tablet.

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