Microsoft Sells Mediaroom To Ericsson

The deal would make Ericsson the leading provider of IPTV and multi-screen solutions with market share of more than 25 percent, according to Ericsson.

The deal is expected to close during the second half of the year.

[Related: Ericsson Sues Samsung After Licensing Talks Fail ]

The Mediaroom technology is used by television service providers including AT&T U-verse, Entertain of Deutsche Telekom, Telefonica, TELUS Optik TV and Swisscom. Mediaroom is found on more than 22 million set top boxes around the world, according to Ericsson.

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"Ericsson's vision of the networked society foresees 50 billion devices to be connected via broadband, mobility and cloud. Future video distribution will have a similar impact on consumer behavior and consumption as mobile voice has had. This acquisition contributes to a leading position for Ericsson with more than 40 customers, serving over 11 million subscriber households," said Per Borgklint, senior vice president and head of Business Unit Support Solutions at Ericsson, in a statement.

Ove Anebygd, vice president and head of TV at Ericsson, told Reuters that the price for Mediaroom was between the $99 million Ericsson paid for Optimi and the $234 million it paid for LG Nortel.