Australia’s Telstra to Acquire U.S. Streaming Startup Ooyala

SYDNEY/MOUNTAIN VIEW: The Australian telco Telstra has upped its interests in the streaming video distribution and monetization platform Ooyala from 23 percent to 98 percent, aiming to build a leading personalized cloud-based platform.

Telstra paid $270 million to up its stake, in addition to the $61 million previously invested in Ooyala over the last two years. Ooyala will then 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.

Ooyala delivers personalized video experiences across all screens; its suite of technologies and services enable content owners to increase viewer engagement and revenue from video. Companies using Ooyala technology include Univision, Foxtel, Comedy Central, NBCUniversal, ESPN and Telefonica.

Fulcher said, “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.”

David Thodey, Telstra's CEO, added, “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.”