Telstra to Buy Ooyala for $270 Million

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.

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