Ooyala Management Completes Buyout of Telstra
Australian-based Telstra is moving on from the video-streaming outfit it acquired in 2014
Ooyala’s management team has completed a buyout of of the company from owner Telstra. According to an announcement from the two organizations, Telstra’s new focus will be on its Telstra2022 strategy and will remain “a valued go-to-market partner and customer.” Meanwhile, the deal provides “the foundation for the next phase of growth for Ooyala,” according to the announcement. Terms of the deal were not disclosed.
“With this transaction we’re ushering in an exciting new chapter for our company, positioning ourselves to invest even more aggressively in our client solutions,” said Jonathan Huberman, CEO of Ooyala. “We’re now much better equipped to more nimbly drive Ooyala’s growth – innovating our own technologies as well as acquiring others that deliver the best customer satisfaction. Our flagship product, the Ooyala Flex Media Platform, is on track to solidify a position as the best-in-class video streaming and media logistics solution.”
Telstra acquired 9% of Ooyala in 2012 and raised its stake to 98% in 2014 at a total cost of more than $500 million. However, by February 2018, Telstra announced that it was writing off its entire Ooyala investment. The non-cash impairment and write-down carried the value of Ooyala to “zero.”
With Telstra now moving on, Ooyala will look to move forward by focusing on its Ooyala Flex Media Platform, which underpins its suite of video streaming and media logistics solutions. Led by existing management, Ooyala expects continued revenue growth fueled by the market adoption of Ooyala Flex Media Platform and its key capabilities focused on cross-device playback and monetization, TV-grade live streaming, MAM-based content management, and insights driven content creation, according to the announcement.
“The management team is excited to take on this next chapter in Ooyala’s growth,” said Huberman. “We are pleased by the tremendous market reception of our flagship product, Ooyala Flex Media Platform, and how it has enabled our OVP and media logistics customers to drive supply chain efficiencies and revenue growth through automation and AI-driven insights. We will continue to invest in Ooyala Flex Media Platform to increase our market-leading position in video streaming and media logistics. In addition, leveraging our resources and in partnership with private equity investors, we are actively exploring acquisition opportunities to further accelerate Ooyala’s growth.”
With the Flex Media Platform, Ooyala powers the content supply chain of many for media, entertainment, telecommunications, enterprise, broadcast, and sports organizations globally, including Audi, Chelsea FC, Dell, National Rugby League of Australia, PGA, Starhub, Sky Sports, Turner and Telstra.