Aussie telco giant Telstra has increased its stake in Silicon Valley video streaming outfit Ooyala, taking a 98 per cent majority with a US$270 million spend.
Telstra already owned a 23 per cent share of the company, stumping $A65.86 million over the last 2 years. Ooyala provides video streaming solutions and analytics for global broadcasters, pay-TV operators and online media sites including Telstra, ESPN, Univision, Telegraph Media Group, Dell, Sephora, Foxtel, NBC Universal, Comedy Central, News Corp, Yahoo! Japan and The Washington Post.
What the acquisition makes clear is that Telstra sees its future in broad brushstrokes. This acquisition also fattens the company’s potential bundle, enhancing the leverage of an RMR model that will include alarm monitoring and cloud-based CCTV solutions.
And while there may be some cross-fertilisation of ideas and technology with the video surveillance market, the clearest message the acquisition sends is that Telstra plans to be a major player in the future of internet TV.
Telstra CEO David Thodey said the investment in Ooyala would help build the Silicon Valley-based company into a world leading personalised video platform company by providing ongoing investments and business relationships.
"Ooyala is one of the industry's fastest-growing personalised video platform companies…Our investment allows Ooyala to take their solution to the next level and thereby further accelerate growth," 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 CEO Jay Fulcher
Ooyala CEO Jay Fulcher said Telstra has worked with Ooyala closely over the past 2 years and have a "shared a vision" for the future of TV and video content delivery.
"Their 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 is one of the industry's fastest-growing personalised video platform companies…Our investment allows Ooyala to take their solution to the next level and thereby further accelerate growth"
