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Tuesday, 09 April 2013 09:51

Ericsson buys Mediaroom

Written by Nick Farrell



TV over the internet

Ericsson struck a deal on to buy Microsoft’s Mediaroom IPTV business. The unit makes software used by phone companies to deliver television over the Internet. It means that Microsoft has given up on internet television and will focus its TV ambitions on its Xbox game console.

Ericsson said it expected to close the deal for the business, which employs more than 400 people worldwide, during the second half of 2013. It did not disclose a purchase price. The price tag has not been announced but apparently it is between $99 abd $234 million,

Ericsson said the deal would make the company, already the world's biggest mobile networks maker, the leading provider of IPTV with a 25 percent market share. Microsoft said the Mediaroom platform was offered by more than 40 operators and powered 22 million set-top boxes around the world.

The Mediaroom platform is the TV technology used by television service providers such as AT&T, Deutsche Telekom, Telefonica and Swisscom, Ericsson said.

Nick Farrell

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