Ericsson acquires Microsoft Mediaroom and Airvana

Date: 05/09/2013
Ericsson has completed the acquisition of Microsoft's Mediaroom business and TV solution.

Per Borgklint, Senior Vice President and Head of Business Unit Support Solutions at Ericsson said: "This acquisition places us even more securely at the heart of an exciting and highly innovative industry. IPTV subscribers alone are predicted to grow by more than 18% each year to reach 105 million subscribers and revenue of USD 45 b. by 2015. By incorporating Mediaroom into our broad portfolio of solutions we will ensure our customers have the ultimate partner as they transform towards true TV Anywhere multi-screen services and optimized video delivery in any network"

Mediaroom is based in Mountain View, California, and is comprised of more than 400 people worldwide. The former Mediaroom business unit, including staff, will be integrated into the Ericsson group under the Business Unit Support Solutions, and will be called Ericsson Mediaroom.

Ericsson has also acquired Airvana Network Solutions' EVDO business. The transaction was structured as a stock purchase.

Airvana's approximately 38 EVDO specialists joined Ericsson group. Airvana Network Solutions is a Massachusetts-based company and supplier of EVDO software to Ericsson. EVDO software enables data transmission in a CDMA wireless network and is an important part of the CDMA ecosystem.

Paul Challoner, Vice President, head of CDMA Radio product, says: "Ericsson is committed to CDMA and to its CDMA customers. We recognize that CDMA will continue to be an important technology in the operators' networks. We continue our vertical integration strategy for key CDMA products and further strengthen our control over product portfolio, ensuring long-term support to our customers with the ability to better respond to their requirements."

Ericsson and Airvana will jointly seek dismissal of the lawsuit filed by Airvana in February 2012, against Ericsson in the Supreme Court of the State of New York, USA.