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Rumor: Microsoft in talks to sell MediaRoom IPTV to Ericsson

updated 10:29 am EDT, Wed March 27, 2013

Service behind AT&T U-Verse could be sold within weeks

Microsoft is allegedly talking to Ericsson to sell its IPTV business. The sale, which would include the same MediaRoom unit that powers the U-Verse IPTV service from AT&T among others, could be announced by the companies in the next few weeks, and could be a way for Microsoft to streamline its Entertainment and Devices division.

Sources of Bloomberg claim the deals are underway and are in private. Such a sale would allow Ericsson to bolster its software-based services that it provides to phone companies and carriers, possibly allowing them to compete against cable companies and other services providing content from broadcasters.

Though such a sale would free up some resources, Microsoft still provides television and related services through the Xbox 360 using apps, including a number of on-demand streaming services. Though in a number of cases it offers a similar service, it is separate to the MediaRoom unit, which for all intents and purposes is surplus to requirements.

Taking into account the streaming apps, the always-on nature and Blu-ray drive said to be used in the next Microsoft console, the company could be attempting to focus its efforts into making the Xbox the single entertainment device for the living room. This could be difficult, considering other companies such as Intel are working on their own streaming television solutions.



By Electronista Staff
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