Australian service provider Telstra is to acquire video streaming and analytics specialist Ooyala for US$270 million (€201 million).
Telstra, which already owns a 23% stake in Ooyala, has invested US$61 million in the company over the last two years.
The acquisition, via Telstra’s Global Applications and Partners unit, is expected to close within the next 60 days.
Ooyala will become a subsidiary of Telstra, and will operate as an independent business under the leadership of its existing management team led by chief executive officer Jay Fulcher. The company will retain the Ooyala brand and will continue to be headquartered in Silicon Valley.
According to the pair, the investment will make Ooyala one of the best-capitalised and most comprehensive video and analytics technology companies in the world.
“Our strategy for leadership in this market is now backed by Telstra’s full-throttle commitment to establishing an independent, world-leader in cloud-based personalized TV and video technology. Our shared vision is one of a seamlessly converged broadcast and broadband television landscape. It’s the future that every broadcaster, media company and operator around the world is moving toward. As the world’s collective definition of TV and video blurs across multiple devices and a more personalized viewing experience, the technologies and measurement tools for content delivery and monetization will evolve,” said Fulcher in a blog posting.
“With the backing of Telstra, we will double down on key investments by accelerating our hiring, deploying innovations faster, and teaming with new global partners who will help us drive the adoption of the world’s cloud-based TV and video services on Ooyala technology.”