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

Latest Videos

Conversations over a cuppa with CMO: ABC's Leisa Bacon

In this episode of Conversations over a Cuppa with CMO, ABC's director of audiences, Leisa Bacon, shares how she's navigated the COVID-19 crisis, the milestones and adaptability it's ushered in, and what sustained lessons there are for marketers as we start to recover.

More Videos

Zero proof spiritsUsa since 2011 www.arkaybeverages.com🤪🤟

Sylvie

How this alcohol-free spirits brand rode the health and wellness wave

Read more

okay this a good newsmaybe i gonna try it

kenzopoker1

CMO's top 8 martech stories for the week - 9 July 2020

Read more

Very insightful. Executive leaders can let middle managers decide on the best course of action for the business and once these plans are ...

Abi TCA

CMOs: Let middle managers lead radical innovation

Read more

One failing brand tying up with another failing brand!

Realist

Binge and The Iconic launch Inactivewear clothing line

Read more

I am 56 years old and was diagnosed with Parkinson's disease after four years of decreasing mobility to the point of having family dress ...

Nancy Tunick

The personal digital approach that's helping Vision RT ride out the crisis

Read more

Blog Posts

MYOD Dataset: Building a DAM

In my first article in this MYOD [Make Your Organisation Data-Driven] series, I articulated a one-line approach to successfully injecting data into your organisation’s DNA: Using a Dataset -> Skillset -> Mindset framework. This will take your people and processes on a journey to data actualisation.

Kshira Saagar

Group director of data science, Global Fashion Group

Business quiet? Now is the time to review your owned assets

For businesses and advertiser categories currently experiencing a slowdown in consumer activity, now is the optimal time to get started on projects that have been of high importance, but low urgency.

Olia Krivtchoun

CX discipline leader, Spark Foundry

Bottoms up: Lockdown lessons for an inverted marketing world

The effects of the coronavirus slammed the brakes on retail sales in pubs, clubs and restaurants. Fever-Tree’s Australia GM Andy Gaunt explains what they have learnt from some tricky months of trading

Andy Gaunt

General manager, Fever-Tree Australia and New Zealand

Sign in