Ericsson, the telecommunications equipment manufacturer from Sweden has formalized a deal to purchase Mediaroom IPTV from Microsoft. Mediaroom IPTV develops software that delivers television over the internet through phone companies.
The acquisition would make Ericsson the market leader in this growing market. It also is a recognition of Microsoft's efforts to place itself at the forefront of internet television that failed in its lofty ideals. Now, after its exit, it would be focusing more on the television options for its top-selling game console, Xbox.
The deal would include an employee headcount of 400 individuals located all across the globe and the deal is expected completed towards the latter half of 2013. There was no purchase price disclosed but according to Ove Anebygd, VP and Head for TV at Ericsson, the deal is between US$99 million and US$234 million.
He confirmed, "This deal is within range where we previously bought a company called Optimi for US$99 million and where we also bought LG Nortel for US$234 million. So this is somewhere between the two."
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