Microsoft TV Software: Is Microsoft Selling its TV Software Business?

Microsoft TV Software: Although Microsoft Corporation (NASDAQ:MSFT)’s TV software business goes relatively unnoticed, it is safe to say that there are people out their keeping an eye on it. One such company is Ericsson.

Microsoft Corporation (NASDAQ:MSFT) is one of the hedge fund industry’s most popular stock picks, and it’s always important to pay attention to the smart money (see just why here).

It is being reported by Reuters that Ericsson is interested in buying this part of Microsoft’s business.

For a better idea of what this is all about, take a closer look at the following excerpt from the Reuters article:

“Ericsson is in talks to buy Microsoft Corp’s IPTV business, which makes software used by phone companies such as AT&T to deliver television over the Internet.”

Did you even know that Microsoft Corporation (NASDAQ:MSFT) was involved in this industry? Those who keep close tabs on the company may know a thing or two about its IPTV business, but many others are surprised to learn about this.

An article published by Bloomberg touches on the finer details of a potential acquisition, including why Ericsson may be interested in moving forward at this time:

“Ericsson, the largest maker of wireless networks, is seeking to cater to phone companies that are competing with cable, satellite and Web-based providers. The move will also help Ericsson step up its emphasis on software and services amid accelerating competition in hardware. Microsoft, the biggest software maker, intends to focus on delivering TV through its Xbox game console, a person familiar with its plans said.”

While there is no way of saying for sure if the deal will take place, the same Bloomberg article cites people close to the situation as saying a transaction could be completed within a few weeks.

What do you think about this potential acquisition? Share your thoughts in the comment section below.

Check back in the weeks to come, as we keep you posted on this story.

Check back here for more updates on Microsoft TV Software.

DISCLOSURE: I have no positions in any stock mentioned.

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