Ericsson confirms the acquisition of Microsoft's Mediaroom IPTV business, a move making Ericsson the biggest IPTV and multi-screen solution provider, with over 25% market share.
The financial details of the deal are not available but Bloomberg suggests Mediaroom is worth up to $1 billion.
The sale confirms the Microsoft TV strategy-- the company says it is "dedicating all TV resources to Xbox in a continued mission to make it the premium entertainment service... whether on a console, phone, PC or tablet."
Mediaroom technology powers 22 million STBs in 11 million subscriber households globally, and is used in Deutsche Telekom, Telefonica, Swisscom and AT&T VOD offerings.
Following acquisition (set to close in H2 2013) Mediaroom will make part of the Erisson Business Support Solutions unit.
"Ericsson's vision of the Networked Society foresees 50 billion devices to be connected via broadband, mobility and cloud," Ericsson says. "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."
Go Ericsson to Acquire Microsoft Mediaroom
