By David Winning
SYDNEY--Telstra Corp. (TLS.AU) said it will acquire nearly all
the shares in Silicon Valley-based video streaming and analytics
company Ooyala that it doesn't already own for US$270 million.
Telstra, Australia's biggest telecommunications provider, built
a 23% stake in Ooyala over the past two years, and Tuesday's deal
would result in its shareholding rising to 98%.
"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," David Thodey, Telstra's chief executive, said in a
statement.
"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," he added.
Ooyala, which was founded in 2007, expects to generate revenue
of US$65 million this year. The company said it has more than 330
employees and a global footprint of 135 million unique users in
nearly 240 countries.
Write to David Winning at david.winning@wsj.com
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