Ooyala has sold a 98% share in its analytics firm to telecommunications company Telstra as video advertising becomes more of a priority for marketers.
Telstra’s US $270 million investment means that its ownership increases from 23% to 98%, which the global information services says is in addition to the US $61 million it has pumped into Ooyala over the past two years.
Both companies expect the transaction to be completed in the next 60 days once it has undergone the customary closing conditions, resulting in Ooyala becoming a subsidiary of Telstra.
It is hoped the transition to Telstra ownership will be as smooth as possible, with steps being taken to keep Ooyala running independently while allowing the existing management, led by CEO Jay Fulcher, to remain in control.
Silicon valley will continue to be the headquarters for Ooyala, although David Thodey, Telstra’s CEO, has gone on the record to state that the video tech platform will be let loose on other continents very soon.
"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 said.
With other offices in New York City, London, Sydney, Tokyo and Guadalajara, Mexico, Ooyala already has a large number of clients using its technology including Comedy Central, NBC Universal,ESPN, Telegraph Media Group, Telefonica and The North Face.