Ericsson Buys Microsoft's Mediaroom Business

News: Swedish technology company Ericsson has acquired US IT company Microsoft's Mediaroom business unit, giving it millions of additional customers, reports ZDNet. The company said the move to buy 400-person Mediaroom IPTV business represents a strategic addition to its multi-screen offering. Ericsson said the acquisition is expected to give it a dominant position in the TV-over-IP market with market share of around 25%. Microsoft's IPTV business offers software used by companies such as AT&T, CenturyLink, Deutsche Telekom and Vodafone.

BMI View: Even after a minor downgrade to our IT market forecast in the Q3 2013 on the basis of a weaker macroeconomic outlook, the Swedish IT market is one of the fastest growing and most dynamic in Western Europe. We forecast the IT market will increase by 4.8% in 2013 to a total value of SEK120.3bn, with growth sustained by trends within the IT market. Key to sustaining growth will be demand for tablets and hybrids/convertibles in the retail market, investment in datacentres, demand for cloud computing and development of real-time business software and services. There is however downside risk to this outlook from a worsening of conditions in the eurozone which could hit consumer and business confidence.

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Geography: Sweden

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