Telstra Corporation Limited (ASX:TLS) has bought a Silicon Valley-based video platform company called Ooyala.
Australia’s largest telco will pay $US270 millionto boost its stake in the video streaming and analytics business to 98 per cent from 23 per cent.
The investment builds on the $US61 million Telstra previously invested in Ooyala over the past two years.
CEO David Thodey says the controlling stake in Ooyala will help Telstra build it into a world leading personalised video platform company.
Mr Thodey advises Ooyala enables broadcasters, operators and media organisations to deliver digital TV and video content across any device.
Ooyala reaches mass audiences and uses analytics to provide recommendations, personalised content and advertising to the end user.
The transaction remains conditional on approvals but is expected to be tied up over the next 60 days.
Telstra Corporation reported a net profit of $1.7 billion in the first half of its 2014 financial year.
