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Ericsson Closes Microsoft Mediaroom Deal

IPTV Platform Renamed Ericsson Mediaroom, Shift Focus to Multiscreen Video 9/05/2013 11:20 AM Eastern

Ericsson has closed its acquisition of Microsoft’s Mediaroom business, which includes IPTV systems and software that power video services in about 13 million homes and 24 million set-tops.

Ericsson and Microsoft announced the deal on April 8, marking a deeper move into the pay-TV ecosystem by Ericsson and signaling Microsoft’s more focused attention on its Xbox platform, which include the Xbox One when the new console launches November 22.

At the time, Ericsson said the purchase will give it a combined market share of more than 25%, thanks to the addition of marquee Mediaroom customers such as AT&T U-verse, Deutsche Telekom, Telefonica, TELUS Optik TV and Swisscom.

Ericsson’s plan is to integrate Mediaroom as it develops a broader multiscreen system not just for set-tops, but tablets, smartphones and other connected devices. Ericsson said the Mountain View, Calif.-based Mediaroom unit and its more than 400 employees will folded into its Business Unit Support Solutions Group and renamed Ericsson Mediaroom.

“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,” said Ericsson SVP and head of business unit support solutions Per Borgklint, in a statement.

September