Two decisions this week have all but sealed the final fate of coveted digital video specialist Tandberg Television.

On Wednesday, Tandberg confirmed it had recommended that its shareholders accept a $1.4 billion, unsolicited offer from Ericsson.

Ericsson outbid an original, $1.2 billion cash and stock deal tendered by ARRIS.

After weighing a range of competitive bids and other "strategic alternatives," Tandberg said Ericsson's offer "delivered the highest value to Tandberg Television's shareholders at that time."

Ericsson has already acquired an 11.7 percent stake in Tandberg via certain institutional shareholders, along with pre-acceptances from an additional 15.7 percent. That situation, Tandberg pointed out, would prevent ARRIS from obtaining a required 90 percent "acceptance condition" unless Ericsson opted to sell its stake in Tandberg or support the ARRIS offer.

ARRIS confirmed on Thursday that it would not extend or increase its original offer for  Tandberg. ARRIS noted that it has received a termination fee of $18 million, adding that it incurred about $9 million to $10 million of expenses for its original Tandberg transaction.

"Although the Tandberg Television acquisition was a desirable transaction, our offer was fully priced and we believe a transaction at [a] higher price would not be in the best interests of our shareholders," said ARRIS Chairman & CEO Bob Stanzione, in a statement.

He said ARRIS would maintain a "disciplined approach in its acquisition strategy," adding that the company will explore other potential acquisitions and partnerships.

Stanzione did not detail where ARRIS might look in order to fill its digital video technology gap, but industry analysts have spelled out a range of possible targets, including Terayon Communication Systems, Harmonic Inc., C-COR Inc. and Concurrent Computer Corp. Analysts have also suggested that ARRIS could become a takeover candidate.