August 18, 2014 0 Comments
As part of its efforts to continue to control distribution, systems and platforms in the digital age, Telstra, Australia’s largest telecommunications company, has invested US$270 million to increase its stake in Ooyala, a leading Silicon Valley-based startup that provides cloud-based video platform services. The funding is on top of Telstra’s $61 million investment in Ooyala over the past two years and has increased Telstra’s stake in the company to a majority of 98% from 23%. Under the deal, Ooyala will operate independently under the leadership of its present executive and management teams and all employees will be retained. It will also continue to serve its existing clients like Univision, Comedy Central, NBC Universal, Telstra, ESPN, Telegraph Media Group, and Telefonica, among others.
So why is Telstra so interested in Ooyala? Analysts are predicting that Telstra wants to transition from being a traditional telecommunications enterprise to a global technology company. Telstra already owns 50% of video on-demand operator Foxtel and has expanded into digital media, file sharing and e-health. With Ooyala, Telstra will gain a substantial foothold in the thriving personalised cloud TV and video technology market and now has the expertise to compete with Google’s YouTube, Brightcove, and other emerging players.
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