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Ericsson Buying Microsoft's Mediaroom Business

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

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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.

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