27/02/2007

Tandberg TV go for $1.39bn

Ericsson is trying to buy Tandberg for $1.39bn, though ARRIS may yet up their bid.

Tandberg used to specialise in videoconferencing systems, though have moved in to the IPTV world and that's where the big money is going to be. Everyone will be watching TV through an internet connected set top box and everyone wants to be in that space.

Cisco bought Scientific Atlanta for the same reason.

Though IPTV is in its infancy, it's the future and everyone knows it - though the business models (and infrastructure) are still big unknowns. However the big players know they've got to do something now so they're in a position to grab the market when it does take off.

It's a big gamble, but one that is likely to pay off in the long term.
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