No official comments from either company have been made

Reports are coming in that Ericsson is in talks to purchase Microsoft's IPTV business. Microsoft’s “MediaRoom” IPTV wing is tasked with making software used by phone companies such as AT&T to allow the delivery of television service over the internet. A source that claims to be familiar with the ongoing negotiations says that the transaction could be announced in a few weeks.

“MediaRoom has gone from being a centerpiece of Microsoft’s TV strategy to a kind of sideshow,” said Colin Dixon, chief analyst of nScreenMedia.

Ericsson is reportedly looking for a way to cater to phone companies that want to compete with cable, satellite, and web-based television providers. The source familiar with Microsoft's plans says that the software maker intends to focus on delivering TV content through its Xbox game console.

If Ericsson purchased the IPTV arm of Microsoft, it would give the company the ability to compete with over-the-top services such as Netflix and others in the streaming market.
Neither Microsoft nor Ericsson has offered official comment on the reports at this time.

Source: Bloomberg

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