Australian-based telco Telstra and Ooyala have reached a definitive agreement for Telstra to acquire Ooyala. The US$270 million investment increases Telstra's ownership in Ooyala from 23 per cent (fully diluted) to 98 per cent and is in addition to the US$61 million previously invested in Ooyala over the past two years.
Ooyala will become a subsidiary of Telstra, and will operate as an independent business under the leadership of its existing management team led by chief executive officer Jay Fulcher. The company will retain the Ooyala brand and will continue to be headquartered in Silicon Valley.
The investment makes Ooyala one of the best-capitalized and most comprehensive video and analytics technology companies in the world. It is the culmination of a successful, long standing investment and business relationship between Ooyala and Telstra. As one of the world's largest telecommunications companies, with deep expertise in the digital media space, Telstra can provide the necessary and ongoing investments and business relationships to build on Ooyala's leadership in personalized video.
"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," Fulcher said.
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.
Telstra Chief Executive Officer, Mr. David 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.
"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," Mr. Thodey said.
Having already established the most robust set of end-to-end video technologies and services in the global marketplace, with tier-one customers including ESPN, Foxtel and Univision, Ooyala can now more rapidly scale its operations worldwide to seize the multi-billion dollar opportunity for cloud-based video solutions that enable personalized multi-screen television for mass audiences.