Please ensure Javascript is enabled for purposes of website accessibility

Ericsson Buying Microsoft's Mediaroom Business

By Chris Neiger - Apr 8, 2013 at 10:46AM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Move to bolster Ericsson's IPTV standing.

Ericsson (ERIC -0.69%) is acquiring Microsoft's (MSFT 1.50%) Mediaroom TV business, which it says will make it "the leading provider of IPTV [Internet Protocol television] and multi-screen solutions with a market share of over 25%."

The purchase announced today is expected to go through in the second half of 2013. Mediaroom provides the technology for TV services like AT&T's U-verse, Swisscom, Telefonica, and others around the world. Mediaroom-powered TV services total more than 22 million set top boxes, according to today's announcement from Ericsson. 

"The importance of video distribution capabilities for the customers and their consumers will be increasing as more and more LTE networks are deployed and filled with smartphone users," Ericsson said.

According to Ericsson, the global IPTV market is estimated to reach 76 million subscribers in 2013, growing to 105 million subscribers in 2015.

The Ericsson statement said that Mediaroom will be incorporated into the company's Business Unit Support Solutions department. Mediaroom is in Mountain View, Calif., and employs more than 400 people worldwide. The press release did not include a purchase price.


Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Microsoft Corporation Stock Quote
Microsoft Corporation
$263.52 (1.50%) $3.90
Telefonaktiebolaget LM Ericsson (publ) Stock Quote
Telefonaktiebolaget LM Ericsson (publ)
$7.92 (-0.69%) $0.06

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/25/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.