Ericsson said to be in talks to buy Microsoft’s IPTV business

Ericsson are apparently in talks with Microsoft regarding the Swedish company buying up Microsoft’s IPTV business.

The initial report from Bloomberg states that Ericsson is looking to acquire Microsoft’s IPTV arm MediaRoom in order to pitch the service to phone companies. Citing unnamed sources, the report claims that the transaction could be announced “in a few weeks.”

On Ericsson’s side, an IPTV solution would allow telecoms companies to offer a television service on top of voice and data products, increasing their competitiveness in the face of increasingly web-based alternatives.

For Microsoft’s part, Redmond is reportedly set to focus on content delivery via the Xbox Live network, something which has been obvious for some time, and the company is unlikely to expand on their current use of IPTV. Microsoft’s pending announcement of a new Xbox console will likely reinforce their attempt at shifting perceptions of the console away from being a gaming machine and towards a complete home entertainment center. The situation, should it be confirmed, should be win-win for both parties.

Source: Bloomberg