Telstra purchases control of video analytics platform Ooyala for US$270m

Telstra CEO David Thodey says deal allows telco to provide personalise video content streaming and advertising to customers

Telstra is set to bring more personalised video content and advertising to customers after spending US$270 million (AUD $291m) on boosting its stake in Silicon Valley-based video analytics platform provider, Ooyala, to 98 per cent.

The deal announced today is culmination of several years of investment by the ASX-listed telco into the video streaming and analytics business. Telstra previously owned a 23 per cent stake in the business, investing US$61million over the past two years.

The latest acquisition is subject to certain listing conditions and regulatory approval but is expected to be completed in the next 60 days.

In a statement, Telstra CEO, David Thodey, said the deal will help the telco giant become a world-leading personalised video platform company.

“Ooyala enables broadcasters, operators and media organisations to deliver digital TV and video content, across any device to mass audiences, using analytics to provide recommendations, personalised content and advertising to the end user,” he said.

“Ooyala delivers a personalised video platform as an end-to-end cloud solution service, which saves customers high upfront investments in online video infrastructure and helps increase the return on their content. Our investment allows Ooyala to take its solution to the next level and thereby further accelerate its growth.”

Ooyala was founded in 2007 and has 330 employees. According to Telstra’s statement, it is forecasting revenue of US$65m for the 2014 calendar year. Current customers include Telstra, ESPN, Foxtel, Univision, Dell, News Corp, Sephora and The Washington Post.

Company president and CEO, Jay Fulcher, will stay in his current role, with Ooyala becoming a subsidiary of Telstra and operating as a standalone business. It will retain its branding, structure and management under the telco’s global applications and platforms group.

Fulcher said thanks to the work between the two companies over the past two years, they shared an aligned vision around how to deliver the next generation of personalised cloud TV and video services.

“Telstra’s acquisition validates both the scale of the global market opportunity and our data-centric strategy for helping our customers win as the industry transforms,” he stated. “This 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.”

Thodey noted the rise of TV and video consumption across an ever-increasing pool of devices and said the systems and platforms for managing, distributing and monetising these services will continue to evolve.

Related: How Telstra united TV and digital analytics

“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,” he stated.

“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.”

Follow CMO on Twitter: @CMOAustralia, take part in the CMO Australia conversation on LinkedIn: CMO Australia, join us on Facebook: https://www.facebook.com/CMOAustralia, or check us out on Google+: google.com/+CmoAu

Signup to CMO’s email newsletter to receive your weekly dose of targeted content for the modern marketing chief.

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
Show Comments
cmo-xs-promo

Latest Videos

More Videos

who wants to date me I am 9 years old and i am a boy

Jeremy Hawkins

Sink a sub gaming experience signals Subway's renewed brand push

Read more

Great read. I agree that it should be a perfect balance between interacting with your customers and knowing your brand. As a business, yo...

Caroline Scott

7 ways CMOs can improve their customer engagement game

Read more

Very true. Team development helps improve collaboration among the team members. I was able to improve my team's collaboration skills by t...

Quent Sinder

Why empowering others can help make you a great leader

Read more

CRM is a very good software that can help you succeed in your business. In my company, this system has allowed me to improve customer rel...

Anna Janicka

Sensis rebrands to Thryv and brings business software to Australian SMBs

Read more

AI Leasing Assistants have finally arrived for the multifamily industry. With so many to choose from it can be hard to figure out which i...

Alice Labs Pte. Ltd.

CMO's top 8 martech stories for the week - 6 May 2021

Read more

Blog Posts

Unboxing 101 - How savvy influencer engagement can build a brand

The humble unboxing video is a powerful tool. Correctly executed, it harnesses consumer fandom, viral authenticity and brand design magic to deliver a high-impact message to a tightly targeted cohort of consumers.

Gali Arnon

Chief marketing officer, Fiverr

​Power to the people

Purpose is the ultimate statement of intent for many organisations. Why are we here? What are we trying to achieve?

Rich Curtis

CEO, FutureBrand A/NZ

The playbook to develop strategic brand moats

Warren Buffet is an unlikely ally for marketers. But his belief businesses need strategic moats that increase their value in the market while acting as barriers to competitors can offer marketers a new playbook for brand building and driving growth.

Fabian Di Marco

Founder and managing director, Tzu & Co

Sign in