Ericsson closes acquisition of Microsoft Mediaroom

Ericsson has just announced through their site that the acquisition process of Microsoft Mediaroom has reached completion.

Microsoft Mediaroom is the world's most deployed IPTV technology with almost 13 million customers. Mediaroom powered-services are available on 60 of the world's leading operators which adds value to the deal even further. Microsoft and Ericsson had started the acquisition process on 8th April 2013. Ericsson now becomes the global leader in providing IPTV technology with a marketshare of 25%; the company has described this as a "strategic addition to its multi-screen offering." The financial details of the deal have not been disclosed by either parties involved.

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

"This acquisition places us even more securely at the heart of an exciting and highly innovative industry. IPTV subscribers alone are predicted to grow by more than 18% each year to reach 105 million subscribers and revenue of USD 45 b. 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."

Mediaroom is based in Mountain View, California. It consists of 400 people worldwide who will be integrated into Ericsson, and the Mediaroom business unit will be now known as Ericsson Mediaroom.

Source: Ericsson | Image via TelecomLead

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8 Comments

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ork said,
Att UVerse is powered by Mediaroom.

I ain't from the States, so UVerse sounds like something from a foreign planet to me.
Though, why would they sell it? Wouldn't they want to use it tandem with XB1, to complete the "center of your entertainment" idea?

Sszecret said,
Am I the only one here who hasn't heard of Mediaroom?

LOL, just like you last year I had no idea who or what was mediaroom. Its like a streaming service for TV easiest way to explain it. Uverse was or is depending on where you live TV streaming for ATT customers.

I suspect that Microsoft's getting out of the cable business was part of a deal with Cable and Satellite companies to adopt and support the XBox One's TV capabilities. In addition, I believe that next year after production is ramped up and services are in place, these partnerships will announce subsidized XBox Ones for $99 - $199 with a 2 year contract. It slows the cord cutting, and allows for cable companies to keep their equipment licensing fees for cable boxes. MS has partnerships (or has worked with in the past) Time Warner Cable, Verizon, AT&T, Comcast, DishNetwork, and DirecTV in the US and a number of other companies around the world like Sky and Foxtel. MS did indicate that they wanted to implement the TV services across all of the markets they cover with XBox Live and I think to make these partnerships happen, they had to sell off the Media Room services to not directly compete. After the initial production run and market expansion, I expect that we will see announcements in Q3-Q4 for the subsidized partnerships along with the new HALO TV series and other productions MS has engaged with Hollywood for. 2014 will be an interesting year.

Drewidian said,
I suspect that Microsoft's getting out of the cable business was part of a deal with Cable and Satellite companies to adopt and support the XBox One's TV capabilities. In addition, I believe that next year after production is ramped up and services are in place, these partnerships will announce subsidized XBox Ones for $99 - $199 with a 2 year contract. It slows the cord cutting, and allows for cable companies to keep their equipment licensing fees for cable boxes. MS has partnerships (or has worked with in the past) Time Warner Cable, Verizon, AT&T, Comcast, DishNetwork, and DirecTV in the US and a number of other companies around the world like Sky and Foxtel. MS did indicate that they wanted to implement the TV services across all of the markets they cover with XBox Live and I think to make these partnerships happen, they had to sell off the Media Room services to not directly compete. After the initial production run and market expansion, I expect that we will see announcements in Q3-Q4 for the subsidized partnerships along with the new HALO TV series and other productions MS has engaged with Hollywood for. 2014 will be an interesting year.

I had the same idea for cable providers to offer it as their box for a subsidized price. It would be a big win for MS if it happens since that also gives you more ways into the home.