Ericsson has struck a deal to acquire Microsoft's Mediaroom
business, a purchase that aims to shore up Ericsson's IPTV customer base and
its ability to deliver of services to set-tops as well as tablets, smartphones
and other mobile devices, while Microsoft looks to turn up the heat on its Xbox
platform.
Ericsson didn't disclose the purchase price Monday, but said
it expects to close the deal during the second half of 2013 and incorporate Mediaroom
into its Business Unit Support Solutions division.
Mediaroom is based in Mountain View, Calif., and employs
about 400 people worldwide. Ericsson employs more than 110,000 people. Ericsson
and Microsoft announced the deal more than a week after Bloomberg reported that
it was in the works, speculating that Mediaroom could fetch more than $1
billion.
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