Ericsson to buy Microsoft's TV software unit

NEW YORK — Ericsson says it has agreed to buy Microsoft's Mediaroom business, which makes the software that powers AT&T's U-Verse TV service.

Ericsson, the Swedish maker of telecommunications equipment, did not say in its announcement how much it's paying.

Mediaroom gives phone companies a way to provide cable-like TV services over phone lines. Ericsson says it's used in 11 million households. U-Verse accounts for about 4.5 million of those. It's also used by Deutsche Telekom of Germany and by Telus Communications of Canada.

Ericsson says the business complements its portfolio of TV products. The business employs more than 400 people and is based in Mountain View, Calif.

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