MOUNTAIN VIEW, Calif. -- Telstra, one of the largest telecommunications and information services companies in the world, and Ooyala, a leader in video streaming and analytics, today announced they 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. The transaction is subject to customary closing conditions and 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 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.
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.