Microsoft and Ericsson announced today that Ericsson will acquire Microsoft Mediaroom, its IPTV platform. It will be integrated into Ericsson's existing Business Unit Support Solutions.
Microsoft will now focus its TV-related efforts on the Xbox brand. In a post on the Official Microsoft Blog, Corporate VP of Marketing, Strategy and Business for the company's Interactive Entertainment Business, Yusuf Mehdi, writes:
This acquisition is mutually beneficial and strategically aligned for both parties. Ericsson will continue to invest in the growth and success of Mediaroom to the benefit of customers, employees, and the industry. It allows Microsoft to commit 100 percent of its focus on consumer TV strategy with 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.
The company indicated that it aims to form numerous partnerships in the industry, including content creators, studios, labels, networks, content aggregators, operators and distributors.
Per Borgklint, Senior Vice President and Head of Business Unit Support Solutions at Ericsson said: "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," Borgklint added. "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."
"We are proud of the number one IPTV market position that we have achieved with Mediaroom. Ericsson's complementary portfolio of TV and networking services will help drive the future growth and development of Mediaroom," said Microsoft Corporate VP Tom Gibbons. "Ericsson is positioned to be a valuable strategic partner for operators and TV service providers around the world as the IPTV market evolves."
Microsoft is planning an Xbox event for next month, when the company is expected to announced the next generation Xbox.