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Ericsson Purchasing Mediaroom from Microsoft, Second Half of 2013

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Mobile telecommunications giant Ericsson announced today that it will purchase Mediaroom from Microsoft, and expects to close in the second half of 2013. It declined to give the purchase price. Mediaroom provides video distribution services for large IPTV operators, including AT&T U-verse, Entertain of Deutsche Telekom, Telefonica, Telus Optik TV, and Swisscom. It’s based in Mountain View, California, and has a staff of over 400 in that and other locations around the world.

With its portfolio of media solutions, Ericsson says it’s focusing on providing services to end users. As more LTE networks are created and smartphone usage continues to rise, Ericsson says the ability to distribute video for clients and end-users will increase. It notes that the global IPTV market will grow to 76 million subscribers this year, and 105 million in 2015.

Once this acquisition in completed, Ericsson says will be the leading IPTV and multi-screen solutions provider, with a market share of over 25 percent.

“Future video distribution will have a similar impact on consumer behavior and consumption as mobile voice has had,” says Per Borgklint, Ericsson’s senior vice president and head of business unit support solutions. “This acquisition contributes to a leading position for Ericsson with more than 40 customers, serving over 11 million subscriber households.”

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