Ericsson to acquire Microsoft Mediaroom

Mon Apr 8, 2013 9:13am EDT

* Reuters is not responsible for the content in this press release.

  STOCKHOLM, SWEDEN, Apr 08 (Marketwired) -- 

* 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) to acquire its TV solution Mediaroom business. This will make
Ericsson the leading provider of IPTV and multi-screen solutions with a
market share of over 25%. Closing expected during the second half of
2013. Mediaroom is situated in Mountain View, California and employs more
than 400 people worldwide.

    Per Borgklint, Senior Vice President and Head of Business Unit Support
Solutions at Ericsson said: "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. In addition,
Ericsson will be powered with senior competence and some of the most
talented people within the field of IPTV distribution."

    The global IPTV market is estimated to reach 76 million subscribers in
2013 with revenues of 32 BUSD, growing to 105 million subscribers and 45
BUSD in 2015.

    "Mediaroom is the leading platform for video distribution deployed with
the world's largest IPTV operators. This strategic acquisition positions
Ericsson as an industry leader thanks to the skills and experiences of
the talented people of Mediaroom combined with Ericsson's end to end
service capabilities" Borgklint concluded.

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

    "We are proud of the number one IPTV market position that we have achieved
with Mediaroom. Ericsson's complementary portfolio of TV and networking
services will help drive the future growth and development of Mediaroom,"
said Tom Gibbons, Corporate Vice President of Microsoft Corporation.
"Ericsson is positioned to be a valuable strategic partner for operators
and TV service providers around the world as the IPTV market evolves."

    Microsoft Mediaroom is the TV technology behind many of the world's
leading television service providers like AT&T U-verse(R), Entertain of
Deutsche Telekom, Telefonica, TELUS Optik TV(TM) and Swisscom.
Mediaroom-powered TV services are offered on more than 22 million set top
boxes deployed throughout the Americas, EMEA and APAC.

    Ericsson already sees that the ever-changing behaviors of TV consumers are
evolving faster than ever. Speed of innovation and intelligent solutions
drive consumer propositions in TV anywhere. This development will
continue to fuel the industry as convergence becomes reality. The
development requires content owners, broadcasters, TV service providers
and operators to re-think their propositions.

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

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

    NOTES TO EDITORS

    Photo and bio of Per Borgklint


 Ericsson has pioneered innovation
within the TV and video area for over 20 years, enabling the entire media
value chain from content acquisition through to delivery of premium
content and enhanced TV experiences to the consumer. Our multimedia
content is available at the broadcast room:
www.ericsson.com/broadcast_room

    Download high-resolution photos and broadcast-quality video at
www.ericsson.com/press

    Ericsson is a world-leading provider of communications technology and
services. We are enabling the Networked Society with efficient real-time
solutions that allow us all to study, work and live our lives more
freely, in sustainable societies around the world.

    Our offering comprises services, software and infrastructure within
Information and Communications Technology for telecom operators and other
industries. Today 40 percent of the world's mobile traffic goes through
Ericsson networks and we support customers' networks servicing more than
2.5 billion subscriptions.

    We are more than 110,000 people working with customers in more than 180
countries. Founded in 1876, Ericsson is headquartered in Stockholm,
Sweden. In 2012 the company's net sales were SEK 227.8 billion (USD 33.8
billion). Ericsson is listed on NASDAQ OMX, Stockholm and NASDAQ, New
York stock exchanges.

    www.ericsson.com

    www.ericsson.com/news

    www.twitter.com/ericssonpress

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    Acquire Microsoft Mediaroom press release PDF:

    http://hugin.info/1061/R/1691160/555305.pdf

    This announcement is distributed by Thomson Reuters on behalf of Thomson
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

    [HUG#1691160]

FOR FURTHER INFORMATION, PLEASE CONTACT

Ericsson Corporate Communications
Phone: +46 10 719 69 92
E-mail: media.relations@ericsson.com

Ericsson Investor Relations
Phone: +46 10 719 00 00
E-mail: investor.relations@ericsson.com

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