Telstra, an Australian telco, has acquired 98 percent of Ooyala, a Silicon Valley-based video streaming platform. Telstra paid US$270 million for the additional stake, in addition to the US$61 million it previously invested in the company over the past two years.
The Ooyala acquisition is the first investment for Telstra’s Global Applications & Platforms group, which was set up to invest in markets that are adjacent to Telstra’s core business, where software disrupts traditional business models.
Telstra CEO, Mr David Thodey, said, “Ooyala delivers a personalised video platform as an end-to-end cloud solution service, which saves customers high upfront investments in online video infrastructure and helps increase the return on their content. Our investment allows Ooyala to take their solution to the next level and thereby further accelerate its growth”
“Telstra‘s global customer relationships, our established presence in Asia and proven integration capabilities, combined with our expertise in online video and investment in Foxtel provide us a unique opportunity to succeed in this growth market,” he added.
Ooyala Chief Executive, 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 was founded in 2007 and is forecasting revenue of US$65m for CY2014. The company has more than 330 employees worldwide and a global footprint of 135 million unique users in nearly 240 countries. Clients include Telstra, ESPN, Univision, Telegraph Media Group, Dell, Sephora, Foxtel, NBC Universal, Comedy Central, News Corp and The Washington Post.