Australian telco Telstra is to acquire the cloud-based TV and video platform Ooyala.
The US$270 million purchase takes Telstra’s holding from 23% to 98%. Over the last two years the company has invested US$61 million in the Mountain View start up.
Ooyala will become a Telstra subsidiary, retaining its existing management team, led by chief executive officer Jay Fulcher.
“With this investment, Ooyala is poised to extend our leadership in the rapidly expanding market for personalized cloud TV and video technology. With today’s news, we combine the backing of one of the strongest telecommunications companies in the world with the intensity and agility of an independent Silicon Valley company,” said Fulcher.
This is the first investment for Global Applications and Platforms (GAP). GAP’s strategy is to create long-term global growth in markets that are adjacent to Telstra’s core business, where software disrupts traditional business models.
Telstra Chief Executive Officer, Mr David Thodey said, this provides an opportunity for Telstra and Ooyala to establish a consolidated leading global company to deliver platforms and services on which the next generation of TV and video will be built.
Ooyala’s multiscreen delivery platform has been picked up by companies including Foxtel, Comedy Central, NBC Universal, Telstra, ESPN, Telegraph Media Group, Telefonica, The North Face, Rolling Stone, Dell, Sephora and Yahoo! Japan.
