The Australian telco Telstra has announced that it has acquired video streaming and analytics company Ooyala as part of a plan to build a major cloud-based TV and video platform company.
Telstra had previously invested $61 million for a 23% stake in Ooyala and is now investing an additional $270 million to increase its stake to 98%. The transaction is expected to be completed in the next 60 days.
Ooyala will become a subsidiary of Telstra and will operate as an independent business under the leadership of its existing management team led by CEO Jay Fulcher. The Ooyala brand will also be retained and it will continue to be headquartered in Silicon Valley.
“With this investment, Ooyala is poised to extend our leadership in the rapidly expanding market for personalized cloud TV and video technology,” Fulcher said in a statement. “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."
Update: Ooyala currently has about 350 employees, and no layoffs are expected with the acquisition a spokesman confirmed, noting that the deal will allow Ooyala to continue its rate of hiring 50 new employees per quarter.
For more, please see this story at Broadcasting & Cable.
-- Multichannel News technology editor Jeff Baumgartner contributed to this story.