UPDATED 14:08 EDT / APRIL 09 2013

NEWS

Microsoft Sells Mediaroom IPTV to Ericsson

Apparently to focus it all on Xbox, Microsoft is selling out some of its other products. The tech giant is selling its Mediaroom IPTV business to Ericsson. Microsoft’s IPTV business allows operators to deliver television over the Internet. Both companies reported the news on their websites, confirming the acquisition.

Calling it a “Mutually beneficial and strategically aligned for both parties,” Microsoft wrote on its official blog about its intentions to completely focus on Xbox.

“With the sale of Mediaroom, Microsoft is dedicating all TV resources to Xbox in a continued mission to make it the premium entertainment service that delivers all the games and entertainment consumers want – whether on a console, phone, PC or tablet. And with 76 million Xbox 360 consoles around the world with 46 million Xbox LIVE members, it is a mission that gets us out of bed in the morning.”

Mediaroom has a subscriber base of 11 million households via 22 million set top boxes across Americas, EMEA and APAC. This acquisition makes Ericsson the leading provider of IPTV and multi-screen solutions with a market share of over 25 percent.

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. Mediaroom is the leading platform for video distribution deployed with the world’s largest IPTV operators. This strategic acquisition positions Ericsson as an industry leader thanks to the skills and experiences of the talented people of Mediaroom combined with Ericsson’s end to end service capabilities.

While the financial terms of the deal were not disclosed, it is expected to close during the second half of the year.

Microsoft has been doing lot of efforts to bring and keep Xbox on the top. In fact, FreeWheel Video Monetization Report 2012 revealed that Xbox maintains the largest majority of video views in the report across non-PC devices at 28.2 percent.


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