News Column

Ericsson to acquire Microsoft Mediaroom

Apr 8 2013 12:00AM



STOCKHOLM, SWEDEN -- (Marketwired) -- 04/08/13 --

* Underlines Ericsson's commitment to being partner of choice for Video distribution across multiple networks and devices

* Places Ericsson in lead for TV Anywhere consumption

* Ericsson becomes leading player for innovative video distribution with combined market share of more than 25%

Ericsson (NASDAQ: ERIC) has reached an agreement with Microsoft (NASDAQ: MSFT) toacquire its TV solution Mediaroom business. This will make Ericsson theleadingprovider of IPTV and multi-screen solutions with a market share of over25%.Closing expected during the second half of 2013. Mediaroom is situated inMountain View, California and employs more than 400 people worldwide.

Per Borgklint, Senior Vice President and Head of Business Unit SupportSolutionsat Ericsson said: "Ericsson's vision of the Networked Society foresees 50billion devices to be connected via broadband, mobility and cloud. Futurevideodistribution will have a similar impact on consumer behavior andconsumption asmobile voice has had. This acquisition contributes to a leading positionforEricsson with more than 40 customers, serving over 11 million subscriberhouseholds. In addition, Ericsson will be powered with senior competenceandsome of the most talented people within the field of IPTV distribution."

The global IPTV market is estimated to reach 76 million subscribers in 2013withrevenues of 32 BUSD, growing to 105 million subscribers and 45 BUSD in2015.

"Mediaroom is the leading platform for video distribution deployed with theworld's largest IPTV operators. This strategic acquisition positionsEricsson asan industry leader thanks to the skills and experiences of the talentedpeopleof Mediaroom combined with Ericsson's end to end service capabilities"Borgklintconcluded.

The total media solution portfolio of Ericsson in the TV and video spacecombined with a further increased focus on consumer needs will be thefoundationfor providing services to end users. The importance of video distributioncapabilities for the customers and their consumers will be increasing asmoreand more LTE networks are deployed and filled with smartphone users.

"We are proud of the number one IPTV market position that we have achievedwithMediaroom. Ericsson's complementary portfolio of TV and networking serviceswillhelp drive the future growth and development of Mediaroom," said TomGibbons,Corporate Vice President of Microsoft Corporation. "Ericsson is positionedto bea valuable strategic partner for operators and TV service providers aroundtheworld as the IPTV market evolves."

Microsoft Mediaroom is the TV technology behind many of the world's leadingtelevision service providers like AT&T U-verse®, Entertain of DeutscheTelekom, Telefonica, TELUS Optik TV™ and Swisscom. Mediaroom-powered TVservices are offered on more than 22 million set top boxes deployedthroughoutthe Americas, EMEA and APAC.

Ericsson already sees that the ever-changing behaviors of TV consumers areevolving faster than ever. Speed of innovation and intelligent solutionsdriveconsumer propositions in TV anywhere. This development will continue tofuel theindustry as convergence becomes reality. The development requires contentowners, broadcasters, TV service providers and operators to re-think theirpropositions.

This move builds on Ericsson's triple Emmy award-winning leadership in themediaindustry, providing its customers with a truly unique experience in TVanywherespanning the entire media value chain from camera to consumer.

The agreement is subject to customary regulatory approvals and otherconditions.Mediaroom will be incorporated into Business Unit Support Solutions.


Photo and bio of Per Borgklint

Ericsson has pioneered innovation within the TV and video area for over 20years, enabling the entire media value chain from content acquisitionthrough todelivery of premium content and enhanced TV experiences to the consumer.Our multimedia content is available at the broadcastroom:

Download high-resolution photos and broadcast-quality video

Ericsson is a world-leading provider of communications technology andservices.We are enabling the Networked Society with efficient real-time solutionsthatallow us all to study, work and live our lives more freely, in sustainablesocieties around the world.

Our offering comprises services, software and infrastructure withinInformationand Communications Technology for telecom operators and other industries.Today40 percent of the world's mobile traffic goes through Ericsson networks andwesupport customers' networks servicing more than 2.5 billion subscriptions.

We are more than 110,000 people working with customers in more than 180countries. Founded in 1876, Ericsson is headquartered in Stockholm, Sweden.In2012 the company's net sales were SEK 227.8 billion (USD 33.8 billion).Ericssonis listed on NASDAQ OMX, Stockholm and NASDAQ, New York stock exchanges.

Acquire Microsoft Mediaroom press release PDF:

This announcement is distributed by Thomson Reuters on behalf ofThomson Reuters clients. The owner of this announcement warrants that:

(i) the releases contained herein are protected by copyright and other applicable laws; and

(ii) they are solely responsible for the content, accuracy and originality of the information contained therein.

Source: Ericsson via Thomson Reuters ONE



Ericsson Corporate Communications
Phone: +46 10 719 69 92
E-mail: Email Contact

Ericsson Investor Relations
Phone: +46 10 719 00 00
E-mail: Email Contact

Source: Marketwire

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