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

Blog Posts

3 marketing mistakes to overcome when courting prospective customers

Marketing that urges respondents to ‘buy now’ is a little like asking someone to marry you on your first date. At any time, only 3 per cent of the market is looking for what you’re selling, so the chances of your date randomly being ‘The One’ is pretty slim.

Sabri Suby

Founder, King Kong

Why are we dubious about deep learning?

The prospect of deep learning gives those of us in the industry something to get really excited about, and something to be nervous about, at the same time.

Katja Forbes

Founder and chief, sfyte

Why you can’t afford to fail at CX in 2019

In 1976 Apple launched. The business would go on to change the game, setting the bar for customer experience (CX). Seamless customer experience and intuitive designs gave customers exactly what they wanted, making other service experiences pale in comparison.

Damian Kernahan

Founder and CEO, Proto Partners

Red Agency YouGov Galaxy Report, February 2019 Predictors Study. https://redagency.com.au/re...

Vanessa Skye Mitchell

DNA-based marketing: The next big thing?

Read more

RIP holden

Max Polding

Marketing professor: For Holden, brand nostalgia ain’t what it used to be

Read more

Where does the claim that 2 million Australians have tested come from ? Anecdotal information suggests that this is way off the mark.

David Andersen

DNA-based marketing: The next big thing?

Read more

Thank you for the info , being part of a digital marketing agency in kerala , this proved handy and get to know with upcoming trends. htt...

Dotz Web Technologies

Predictions: 9 digital marketing trends for 2019

Read more

So who then is correct? The Research or The skilled Digital people.

Anene

Report reveals Australia faces digital skills shortage

Read more

Latest Podcast

More podcasts

Sign in