Microsoft to sell Mediaroom IPTV business to Ericsson - CNET

The software giant says the sale will allow it to focus its TV efforts on Xbox, which will be updated this year. April 8, 2013 7:04 AM PDT Microsoft is selling its Mediaroom business to Ericsson. (Credit: Microsoft) Microsoft plans to sell its Mediaroom IPTV platform business to Ericsson, allowing the software giant to focus its TV efforts on its Xbox gaming system. The companies didn't disclose the purchase price but said the deal should close in the second half of the year. We've contacted Microsoft and Ericsson for more details about the deal and will update the report when we have more information. One of the next big battleground for the tech giants is video. Many, such as Amazon and Netflix, already provide content, but others are looking to provide a full package to consumers. Chip giant Intel is building an IPTV service and set top box, while Apple is reportedly prepping its own system. The game console makers also are looking at the sector, with Sony and Microsoft both seeking to provide more programming to their users. Mediaroom powers many of the world's leading television services such as AT&T's U-verse and Deutsche Telekom's Entertain. Currently, more than 22 million set top boxes in 11 million homes around the world use Mediaroom technology. Ericsson noted the acquisition will make it the leading provider of IPTV and multiscreen offerings with a market share of more than 25 percent. For Microsoft, the deal removes any distraction or conflict with pushing TV on its Xbox console. While Xbox started out as a gaming machine, the majority of the 76 million users worldwide spend more time viewing entertainment than playing games, Yusuf Mehdi, corporate vice president of marketing, strategy, and business for Microsoft's interactive entertainment operations, said during an All Things D conference earlier this year. "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," Mehdi said in a blog post today. He added that there are 76 million Xbox 360 consoles around the world with 46 million Xbox LIVE members. Microsoft is expected to unveil the next generation of the Xbox sometime this year, possibly as soon as next month. The device is likely to attract new users, as well as include new features to attract viewers, not just gamers. The company has said that it's working on providing interactive TV through Xbox, including live events, reality shows, and scripted programs with an interactive twist. Instead of going it alone, Microsoft is trying to partner with content creators, studios, labels, networks, content aggregators, operators, and distributors. "We believe the future of home entertainment is one where TV becomes more simple, tailored and intelligent," Mehdi said today. "We believe the best is yet to come for this industry." via Technology - Google News http://news.google.com/news/url?sa=t&fd=R&usg=AFQjCNEn218nQgwZcOmDF2vj7pGz-hSmPQ&url=http://news.cnet.com/8301-1023_3-57578389-93/microsoft-to-sell-mediaroom-iptv-business-to-ericsson/

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