Telstra will pay US$270 million to acquire video streaming and analytics company Ooyala.
The telco already had a 23 per cent stake in the company after initially investing in Ooyala in 2012. Telstra previously invested US$61 million in the company.
The company, which is headquartered in Silicon Valley, has a video platform that can deliver personalised content to viewers and analyse consumer behaviour.
“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,” Telstra CEO David Thodey said in a statement.
“Our investment allows Ooyala to take their solution to the next level and thereby further accelerate its growth.”
Ooyala will become a Telstra subsidiary led by the company’s current executive, Jay Fulcher.
"With this investment, Ooyala is poised to extend our leadership in the rapidly expanding market for personalised cloud TV and video technology," Fulcher said.
"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."
"Ooyala makes it possible for media companies like Foxtel and ESPN to stream their video content over the internet to devices like smart-phones, tablets and smart TVs. They help us watch what we want, when we want and on whatever device we want. This is changing the way we watch TV – including letting me watch Monday night football at my convenience on a Tuesday night in Australia without needing to pre-record it," Charlotte Yarkoni, the telco's executive director global applications and platforms, wrote in a blog entry.
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Ooyala is forecasting revenue of USS$65 million for this year. Customers include Telstra, Foxtel, News Corp, ESPN, Dell, NBC Universal and Comedy Central.
“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 said.