Telstra is set to bring more personalised video content and advertising to customers after acquiring Silicon Valley-based video analytics platform provider, Ooyala for US $270 million (AUD$291m).
The telecommunication giant's investment in Silicon-Valley based video analytics platform Ooyala will allow it to offer personalised video content streaming and advertising to customers.
The deal announced today is culmination of several years of investment by the ASX-listed telco into the video streaming and analytics business. Telstra previously owned a 23 per cent stake in the business, investing US$61million over the past two years.
The latest acquisition is subject to certain listing conditions and regulatory approval but is expected to be completed in the next 60 days.
In a statement, Telstra CEO, David Thodey, said the deal will help the telco giant become a world-leading personalised video platform company.
“Ooyala enables broadcasters, operators and media organisations to deliver digital TV and video content, across any device to mass audiences, using analytics to provide recommendations, personalised content and advertising to the end user,” he 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 its solution to the next level and thereby further accelerate its growth.”
Ooyala was founded in 2007 and has 330 employees. According to Telstra’s statement, it is forecasting revenue of US$65m for the 2014 calendar year. Current customers include Telstra, ESPN, Foxtel, Univision, Dell, News Corp, Sephora and The Washington Post.