Telstra is set to acquire video streaming specialist Ooyala, with a $270 million investment that increases Telstra’s ownership in Ooyala from 23% to 98%. Under the arrangement Ooyala will become a subsidiary of Telstra and operate as an independent business under its existing management team.
“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. 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,” says Ooyala chief executive officer Jay 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. The transaction is subject to customary closing conditions and is expected to be completed in the next 60 days.