Ericsson May Acquire Microsoft’s IPTV Business

Posted Mar 27, 2013

Ericsson AB is currently in talks to acquire Microsoft Internet Protocol television (IPTV) business.  Microsoft’s IPTV division creates software that is used by companies like AT&T for streaming TV on the Internet.  The transaction may conclude in a few weeks.  Ericsson has been looking for new ways to partner with companies that compete against cable and satellite providers lately so this acquisition would make sense.  Microsoft has an interested in offloading their IPTV business because they want to focus on delivering TV through the Xbox gaming console.

Internet Protocol television is a system where TV services are delivered through the Internet using a packet-switched network instead of delivering the content through traditional satellite signals and cable TV formats.  IPTV lets telecommunication carriers offer voice, broadband, and TV services so that they can compete with cable companies and online streaming services like Netflix.  Microsoft calls their IPTV service MediaRoom.  AT&T uses Microsoft IPTV for U-Verse to combine TV with other communication services.  

In related news, Ericsson recently completed a planned reorganization in Sweden.  This involved cutting 1,399 positions and they will acknowledge the 1.5 billion kronor ($231 million) in restructuring costs for the company’s first quarter results.