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Telecommunications equipment industry

Microsoft Invests Heavily in Cable TV Through Strategic Deals

Strategic Insights

— 1 min read

Microsoft has significantly increased its investment in cable TV in the past three years, culminating in a $5 billion investment in AT&T, a major cable operator. This investment is part of AT&T's purchase of MediaOne for $62 million. The partnership is significant because AT&T has agreed to use a version of Microsoft's Windows operating system on up to 5 million digital set-top boxes. Microsoft has been attempting to break into the cable TV business for six years and aspires to control the user experience of cable TV in the future.

Key Takeaways:

  • Microsoft has invested $1 billion in Comcast and $5 billion in AT&T, totaling a $6 billion investment in cable TV operators in the past three years.
  • The investment is part of AT&T's acquisition of MediaOne for $62 million.
  • AT&T has agreed to use a version of Microsoft's Windows operating system on up to 5 million digital set-top boxes over the next several years.
  • This deal marks a significant milestone in Microsoft's six-year quest to break into the cable TV business.
  • The partnership has major implications for Scientific-Atlanta, which now has a possibility of being involved in designing and supplying digital set-top boxes for AT&T.
  • The investment highlights Microsoft's ambition to control the user experience of cable TV in the future.

Statistics:

  • Microsoft's total investment in cable TV operators in the past three years is $6 billion.
  • The investment in AT&T is $5 billion.
  • AT&T's purchase of MediaOne is valued at $62 million.
  • Up to 5 million digital set-top boxes will run Microsoft's Windows operating system.
  • Microsoft has been trying to break into the cable TV business for six years.

Sources:

  • [Source: Reuters]
  • [Source: Bloomberg]
  • [Source: Company Press Release - AT&T-Mail]

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