The Australian telco Telstra has announced that it has acquired video streaming and analytics company Ooyala as part of a plan to build a major cloud-based TV and video platform company.
Telstra had previously invested $61 million for a 23% stake in Ooyala and is now investing an additional $270 million to increase its stake to 98%.
The transaction is expected to be completed in 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 CEO Jay Fulcher.
The Ooyala brand will also be retained and it will continue to be headquartered in Silicon Valley.
“With this investment, Ooyala is poised to extend our leadership in the rapidly expanding market for personalized cloud TV and video technology,” Fulcher said in a statement. “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. This combination accelerates our growth and pace of innovation, while we remain laser-focused on helping media companies everywhere win in an industry undergoing massive transformation.”
Telstra CEO David Thodey noted that the deal will allow them to better deliver platforms and services on which the next generation of TV and video will be built.
“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,” Thodey explained in a statement.