Telstra acquires US-based video platform
Australian operator Telstra has acquired Silicon Valley’s video platform company Ooyala for $270 million, in a bid to increase its presence in the digital media market.
Telstra has invested $61 million in the company over the past two years, amounting to a 23% stake in the company, and the transaction is expected to complete in the next 60 days, subject to US regulatory approval.
“Ooyala is one of the industry’s fastest-growing personalised video platform companies which saves customers high upfront investments in online video infrastructure and helps increase the return on their content,” said David Thodey, CEO at Telstra.
Thodey expects Ooyala to accelerate the company’s growth in this area and it marks the first acquisition for Telstra’s Global Applications and Platforms business.
Ooyala will become an independent subsidiary of Telstra – retaining its brand, structure and management, including CEO Jan Fulcher – and Telstra has earmarked revenues of $65 million in 2014 for the company.
“[Telstra’s] investment will help us accelerate our growth and cement our lead as the most innovative and forward-thinking cloud TV and video platform company in the world,” Fulcher said.
Ooyala was founded in 2007 and has more than 330 staff worldwide.
The deal follows Telstra’s acquisition of cloud-based O2 Networks in Melbourne, Australia, in January this year.