Australian telecommunications company Telstra announced today that it has increased its stake in US-based Ooyala to a majority 98% with a US$270 million (about £161.07, AU$291.50) investment.
Ooyala provides video streaming solutions and analytics for global broadcasters, pay-TV operators and online media sites including Telstra, ESPN, Univision, Telegraph Media Group, Dell, Sephora, Foxtel, NBC Universal, Comedy Central, News Corp, Yahoo! Japan and The Washington Post.
Telstra had already invested US$61 million (about £36.37, AU$65.86) over the last 2 years in the company for a 23% shareholding, and the new acquisition is still subject to customary closing conditions and US regulatory approval.
A global cloud
Telstra CEO David Thodey said that the Aussie telco's investment in Ooyala would help build the Silicon Valley-based company into a world leading personalised video platform company by providing ongoing investments and business relationships.
"Ooyala is one of the industry's fastest-growing personalised video platform companies... Our investment allows Ooyala to take their solution to the next level and thereby further accelerate its growth," 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."
Ooyala CEO Jay Fulcher has said that Telstra has worked with Ooyala closely over the past 2 years and have a "shared a vision" for the future of TV and video content delivery.
"Their investment will help us accelerate our growth and cement our lead as the most innovative and forward-thinking cloud TV and video platform company in the world," Fulcher said.