Telecom equipment maker Ericsson is to buy Microsoft’s Mediaroom, a software tool that lets operators deliver TV over the Internet.
Mediaroom powers 22 million set-top boxes in 11 million subscriber households worldwide.
The purchase will make Ericsson the leading provider of IPTV and multi-screen solutions with a market share of over 25 percent, the telecom equipment giant asserts in a statement.
The company further argues that the deal puts it in a lead position for ‘TV Anywhere’ consumption.
Microsoft weighed in on its blog as well, calling the acquisition “mutually beneficial and strategically aligned for both parties”.
The Redmond software giant said the deal allows it to fully focus on its consumer TV strategy with Xbox.
Per Borgklint, Senior Vice President and Head of Business Unit Support Solutions at Ericsson said: “Ericsson’s vision of the Networked Society foresees 50 billion devices to be connected via broadband, mobility and cloud. 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 over 11 million subscriber households. In addition, Ericsson will be powered with senior competence and some of the most talented people within the field of IPTV distribution.”
The global IPTV market is estimated to reach 76 million subscribers in 2013 with revenues of 32 BUSD, growing to 105 million subscribers and 45 BUSD in 2015.
“We are proud of the number one IPTV market position that we have achieved with Mediaroom. Ericsson’s complementary portfolio of TV and networking services will help drive the future growth and development of Mediaroom,” said Tom Gibbons, Corporate Vice President of Microsoft Corporation. “Ericsson is positioned to be a valuable strategic partner for operators and TV service providers around the world as the IPTV market evolves.”
The acquisition is expected to close during the second half of 2013 and is subject to customary regulatory approvals and other conditions.
Financial terms were not disclosed.
http://www.ericsson.com/news/1691160
http://blogs.technet.com/b/microsoft_blog/archive/2013/04/08/mediaroom-and-our-tv-journey.aspx