The head of TV at Swedish vendor Ericsson has confirmed that the company is paying between US$ 99mn and US$ 234mn for its purchase of Microsoft’s Mediaroom business, announced just yesterday.
Ove Anebygd, vice president and head of TV at Ericsson, is quoted by Reuters as saying: “This deal is within range where we previously bought a company called Optimi for $99 million and where we also bought LG Nortel for $234 million. So this is somewhere in between the two.”
The purchase will give Ericsson a dominant share of the global IPTV middleware market of more than 25%, and is expected to close in the second half of next year, after which Mediaroom all be integrated into Ericsson’s Business Unit Support Solutions division.
For its part, Microsoft says that the sale will enable it to dedicate all its TV resources to Xbox and make it a premium entertainment platform that delivers all the games and entertainment consumers want.