Telco giant Telstra has acquired video streaming and analytics company, Ooyala.
Telstra previously had a 23 per cent ownership in Ooyala, having invested US$61 over the past two years. This new investment of $270 million increases Telstra’s ownership to 98 per cent, and will make Ooyala a subsidiary of Telstra. The transaction is expected to be completed in the next 60 days.
This is the first investment for Telstra’s Global Applications and Platforms (GAP) unit, a division of the company created last year to foster long-term global growth in markets adjacent to Telstra’s core business, where software disrupts traditional business models.
Ooyala will continue to operate as an independent business in its Silicon Valley offices under the leadership of its current CEO, Jay Fulcher.
“This is a great day for Ooyala,” said Fulcher in an open letter to Ooyala staff, “With today’s news we catapult Ooyala from innovative online video start-up to market-leading cloud TV juggernaut...With the backing of Telstra, we will double down on key investments by accelerating our hiring, deploying innovations faster, and teaming with new global partners who will help us drive the adoption of the world’s cloud-based TV and video services on Ooyala technology.”
Telstra CEO, David Thodey said, “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.”