TLS
12/08/2014 10:13
ASSET
REL: 1013 HRS Telstra Corporation Limited
ASSET: TLS: Telstra to acquire leading video platform company Ooyala
Telstra to acquire leading video platform company Ooyala
SYDNEY, AUSTRALIA, 12 August 2014 - Telstra today announced it will acquire
Silicon Valley-based company Ooyala, a leader in video streaming and
analytics.
The US$270 million investment increases Telstra's ownership in Ooyala from 23
per cent (fully diluted) to 98 per cent and is in addition to the US$61
million previously invested in Ooyala over the past two years. This
transaction is subject to customary closing conditions including the receipt
of US regulatory approvals and is expected to be completed in the next 60
days.
Telstra Chief Executive Officer, Mr David Thodey, said Telstra's investment
and controlling stake in Ooyala would help build it into 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," Mr Thodey said.
This is the first investment for the Global Applications & Platforms group.
Global Applications & Platforms strategy is to create long-term global growth
in markets that are adjacent to Telstra's core business, where software
disrupts traditional business models.
"Ooyala is one of the industry's fastest-growing personalised video platform
companies. The company provides solutions for customers such as broadcasters,
pay-TV operators and online media sites globally," Mr Thodey 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 their solution to the next level and thereby
further accelerate its growth," Mr Thodey said.
Telstra, one of the world's largest telecommunications companies, has deep
expertise in the digital media space, the company can provide the necessary
and ongoing investments and business relationships to build on Ooyala's
leadership in personalised video.
As TV and video consumption continues to increase across multiple devices,
the systems and platforms for managing, distributing and monetising these
services will continue to evolve.
"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," Mr Thodey said.
"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."
Ooyala Chief Executive, Jay Fulcher will continue in his current role and
Ooyala will become a subsidiary of Telstra and operate as an independent
business, retaining its brand, structure and management under the Global
Applications and Platforms group.
Mr Fulcher said Ooyala has worked closely with Telstra for two years and we
shared a vision of what is necessary to deliver the next generation of
personalized cloud TV and video. 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.
"Their 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," Mr Fulcher said.
Ooyala was founded in 2007 and is forecasting revenue of US$65m for CY2014.
The company has more than 330 employees worldwide and a global footprint of
135 million unique users in nearly 240 countries.
Ooyala has some of the largest companies in the world currently using its
platform including Telstra, ESPN, Univision, Telegraph Media Group, Dell,
Sephora, Foxtel, NBC Universal, Comedy Central, News Corp and The Washington
Post.
Telstra media contact: Nicole McKechnie +61 429 004 617 Email:
[email protected]
Ooyala media contact: Steve Biondolillo + 408 620 0847 Email:
[email protected]
Reference: 149/2014
End CA:00253735 For:TLS Type:ASSET Time:2014-08-12 10:13:09
