Ericsson is in active talks to buy Microsoft's IPTV business, MediaRoom.
The division currently creates software used to deliver TV over the Web. Microsoft has large clients such as AT&T.
A deal could be announced in the coming weeks, and could net Microsoft $1 billion, or higher. Annual sales have been around $350 million per year for the last three years.
"This would make sense for Ericsson as it provides for a more complete offering," said Alexander Peterc, an analyst at Exane BNP Paribas. "Still, the technology started to get hyped about 10 years ago and may have reached its peak already, so I don't see this as a growth market."
100 million people will use IPTV services from phone companies this year, but most of the growth is in China and Japan. In the U.S., AT&T offers MediaRoom via its U-Verse service. U-Verse had 4.5 million subscribers at the end of 2012.
A deal could be announced in the coming weeks, and could net Microsoft $1 billion, or higher. Annual sales have been around $350 million per year for the last three years.
"This would make sense for Ericsson as it provides for a more complete offering," said Alexander Peterc, an analyst at Exane BNP Paribas. "Still, the technology started to get hyped about 10 years ago and may have reached its peak already, so I don't see this as a growth market."
100 million people will use IPTV services from phone companies this year, but most of the growth is in China and Japan. In the U.S., AT&T offers MediaRoom via its U-Verse service. U-Verse had 4.5 million subscribers at the end of 2012.
