By Sahil Patel
Telstra has bought out digital video streaming and analytics startup Ooyala for $270 million.
The telecommunications firm — the largest in Australia — previously owned 23% of Ooyala after investing $61 million over the past two years. Once the deal closes, Telstra will control 98% of the startup.
That said, while an almost-wholly owned subsidiary, Ooyala will continue to operate as an independent business, retaining the company’s existing leadership, brand, and Silicon Valley headquarters, Telstra said.
With the investment, Telstra hopes to propel Ooyala to the forefront of the digital video/streaming market. It can provide “necessary and ongoing” investments and business relationships to build Ooyala’s position in the space, Telstra said.
Ooyala offers a full end-to-end online video solution, encompassing management, publishing analytics, and monetization. (If you’ve watched a non-YouTube video online, it’s likely you’ve at least used the Ooyala player once.)
Current Ooyala clients include major media companies like ESPN, NBCUniversal, and Univision. The company is projected to make $65 million in revenue in 2014, according to Telstra.
The deal is expected to be completed in the next 60 days.