Telstra has agreed to acquire US-based video streaming and analytics provider Ooyala. Telstra will invest around USD 270 million to increase its ownership in Ooyala from 23 percent (fully diluted) to 98 percent. This amount adds to the USD 61 million previously invested in Ooyala over the past two years. The transaction is subject to customary closing conditions, including the receipt of US regulatory approvals, and is expected to be completed in the next 60 days.
This is the first investment for the Global Applications & Platforms group. The Global Applications & Platforms strategy aims to create long-term global growth in markets that are adjacent to Telstra’s core business. Ooyala CEO Jay Fulcher will continue in his current role and Ooyala will become a subsidiary of Telstra and operate as an independent business, retaining its brand, structure and management under the Global Applications and Platforms group.
Ooyala enables broadcasters, operators and media organisations to deliver digital TV and video content, across multiple devices (including smartphones, tablets and smart TVs) to mass audiences, using analytics to provide recommendations, personalised content and advertising to the end user. The acquisition is expected to enable Telstra and Ooyala to establish a global company to deliver platforms and services on which the next generation of TV and video will be built.
Set up in 2007, Ooyala targets revenue of USD 65 million for 2014. The company has more than 330 employees worldwide and a global footprint of 135 million unique users in nearly 240 countries.
