Ericsson to Acquire Microsoft Mediaroom

In a move that highlighted its strategy of being service providers’ partner of choice for video distribution across multiple networks and devices, 
in early-April 2013, Ericsson announced it had reached an agreement with Microsoft to acquire its Mediaroom business. Once the acquisition process is completed (likely by Q3, 2013), Ericsson will become the leading provider of IPTV and multi-screen solutions with a global market share greater than 25%.

The acquisition moves the ownership of Mediaroom from a software company – Microsoft – to an infrastructure company – Ericsson – that can deliver complete end-to-end TV solutions to service providers. Over the years, Microsoft’s arrangement with Alcatel-Lucent as its exclusive global IPTV partner has addressed that need. And, Alca-Lu’s own relationships with service providers have contributed to making Mediaroom the number one IPTV solution in many markets – especially in North America, where it has become the only game in town for telcos.

With Ericsson’s strengths on this side of the pond being traditionally with wireless service providers and Alca-Lu’s largely wireline, we wonder how those (Mediaroom) relationships will be affected. The next few months should be very interesting indeed. Watch this space for further developments and look for our TVE Everywhere Report in this summertime.