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Microsoft Corp. (MSFT) has signed a definitive agreement to buy virtualized network software provider Metaswitch Networks to help boost its exposure to 5G and increase its offerings for the telecommunications industry.Terms of the deal weren’t disclosed. Private equity-backed Metaswitch offers cloud-based voice, data and communications solutions for telecommunications operators.“The convergence of cloud and communication networks presents a unique opportunity for Microsoft to serve operators globally via continued investment in Azure, adding additional depth to our hyperscale cloud infrastructure,” Yousef Khalidi, Corporate Vice President at Microsoft said in a blog post. “Metaswitch’s complementary portfolio of ultra-high-performance, cloud-native communications software will expand our range of offerings available for the telecommunications industry.”Metaswitch was founded in 1981 as a pioneer in next-generation voice technology and counts British Telecom, T-mobile, Swisscom, Telstra and Vodafone as its main customers.“As the industry moves to 5G, operators will have opportunities to advance the virtualization of their core networks and move forward on a path to an increasingly cloud-native future,” according to Khalidi.This announcement comes less than a month after Microsoft’s acquisition of Affirmed Networks, which focuses on cloud-native networking solutions for telecom operators and mobile carriers.“Coupled with its recent acquisition of Affirmed, the move further cements MSFT's aim to become a major provider of virtualization services and 5G networking to global telecom providers,” Ryan Koontz, five-star analyst at Rosenblatt Securities wrote in a note to investors. “While we hold doubts as to the scope of near-term financial gains for Azure in the telecom segment, we see strategic advantages as Azure gains access to valuable real estate at the carrier edge.”According to Koontz, the 5G Core market is estimated to reach about $10 billion by 2025 from its current $1 billion, “seeing impressive growth as 5G stand-alone (SA) networks begin wide scale deployments beginning in 2021”.Shares in Microsoft have soared 35% in the past two months and were trading at $183.16 on Friday.TipRanks data shows that Wall Street analysts are almost unanimously bullish on Microsoft’s stock. Twenty-one out of 22 analysts have Buy ratings and 1 has a Hold rating adding up to a Strong Buy consensus. The $198.67 average price target provides investors with 8.5% upside potential in the shares in the coming 12 months. (See Microsoft stock analysis on TipRanks).Related News: Apple is Said to Snap Up Startup NextVR For Virtual Reality Content; Top Analyst Sees Buying Opportunity Taiwan Semi Has Not Received Any Assurance On US License For Huawei Tech Sale Is Royal Caribbean Cruises (RCL) Stock a Buy? This Analyst Says Yes More recent articles from Smarter Analyst: * Fiat Chrysler In Talks For $6.8 Billion State-Backed Loan In Italy * Tesla Gets County Nod to Reopen California Auto Plant – Report * Amazon’s Response To Judiciary Committee ‘Unacceptable’ Tweets Jerry Nadler * President Trump Takes Aim at Digital Tech Giants From Google to Twitter

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(Bloomberg) — Tesla Inc. told employees that a California county health official has now signed off on safety measures the company took last week at its car plant as it restarted production in defiance of the area’s shutdown order.The Alameda County health officer’s approval means Tesla has local support to resume full production starting this week, Laurie Shelby, the company’s environmental, health, and safety vice president, wrote in an email to staff Saturday that was viewed by Bloomberg News. Representatives for Tesla and the county didn’t respond to queries outside regular business hours.The county’s authorization could resolve a highly contentious episode in which Elon Musk threatened to move Tesla’s headquarters and future programs out of California and sued the county over its health officer’s resistance to reopening the factory in Fremont. It’s unclear whether the chief executive officer will now follow through on his warnings, which also included shifting the company’s manufacturing out of the state.When Tesla was resisting calls to idle the factory in March, Fremont officials sought clarification from Alameda County as to whether the company was an essential business. Erica Pan, the county’s health officer, considered the plant to be a public health risk, according to documents obtained through a California public-records request.Musk’s recent comments and threats drew mixed reactions. President Donald Trump and Treasury Secretary Steven Mnuchin said Tesla should be allowed to reopen, and the mayors of Palo Alto, where Tesla has its headquarters, and Fremont, which is home to its plant and roughly 11,000 employees, offered words of support.But other California politicians rebuked the CEO, and his rocket company Space Exploration Technologies Corp. was denied a request for state funds to support job training and hiring on Friday.California Governor Gavin Newsom said Sunday on CNN’s “State of the Union” that Tesla didn’t get preferential treatment over other companies.“It’s a spirit of collaboration,” Newsom said. “Those that continue to pursue things that put people in harm’s risk, you have to have stepped-up efforts of enforcement and sanction. But that was not the case in respect to Tesla. They did work with Alameda County partners. And Alameda County health officials are satisfied that they are likely to reach those thresholds as early as Monday.”(Updates with context on dispute in fourth paragraph)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

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