Ericsson completes acquisition of Microsoft Mediaroom

Ericsson has finalized the acquisition of Microsoft's Mediaroom business.


Ericsson has gained Microsoft's Mediaroom business, giving the telecommunications firm millions of additional customers.

In an announcement on Friday, the company said that the 400-person Mediaroom IPTV business -- based in Mountain View, Calif. -- represents "a strategic addition to Ericsson's multi-screen offering." Today's closing follows the announcement on April 8 that Ericsson was entering into an agreement to purchase the business.

Microsoft's IPTV business provides software used by companies including AT&T, CenturyLink, Deutsche Telekom and Vodafone to provide online television streaming via a two-way IP network. The company says that the acquisition of Microsoft's Mediaroom business gives Ericsson a dominant position in the TV-over-IP market with marketshare of "approximately 25 percent."

The deal's financial details were not disclosed.

While the Redmond giant has shifted its focus from IPTV to making the Xbox platform a set-top box and on-demand competitor , Mediaroom still serves almost 13 million households worldwide, and is offered by "nearly 60 of the world's leading operators," according to Ericsson.

Per Borgklint, Senior Vice President and Head of Business Unit Support Solutions at Ericsson said:

"IPTV subscribers alone are predicted to grow by more than 18 percent each year to reach 105 million subscribers and revenue of $45 bn. by 2015. By incorporating Mediaroom into our broad portfolio of solutions, we will ensure our customers have the ultimate partner as they transform towards true TV Anywhere multi-screen services and optimized video delivery in any network."

The former Mediaroom business unit, including staff, will be integrated into the Ericsson group under Business Unit Support Solutions, and will be called Ericsson Mediaroom as of today.