Amazon Buys Video-Delivery Player Elemental Technologies

Amazon has agreed to acquire Elemental Technologies, a video-encoding and content delivery technology company, to augment its cloud services offerings.

Elemental is being acquired by Amazon Web Services, a subsidiary of the e-commerce company. Terms of the deal were not disclosed. Amazon is paying about $500 million in cash for Elemental, according to a report by The Information citing an anonymous source.

AWS customers include Netflix, which uses the Amazon service for a large portion of its video-streaming delivery. Amazon separately competes with Netflix with Prime Instant Video, an unlimited video-streaming service available to members of its Prime free-shipping program. Amazon last summer bought video-game live-streaming service Twitch for around $1 billion, after Google’s YouTube had been seeking to buy it.

Elemental has more than 700 customers, powering some of the biggest over-the-top TV apps like HBO Go, BBC’s iPlayer, CNNGo, ESPN ScoreCenter, and Sky Go and Sky Now.

Amazon and Elemental will “collaborate on deeper technology integrations and new infrastructure offerings so that media and entertainment companies can evolve their hybrid and cloud models as they continue to innovate their services for viewers,” Andy Jassy, senior VP of Amazon Web Services, said in announcing the pact.

Elemental, based in Portland, Ore., was founded in 2006. AWS said Elemental will continue to operate its business under its existing brand, while expanding the integration of its offerings with AWS and developing new services leveraging customers’ on-premises assets, hybrid architectures and cloud infrastructure.

The acquisition, subject to closing conditions, is expected to close in the fourth quarter of 2015.

More Digital

  • 13 Reasons Why S2

    Netflix Q2 Preview: Can International Flywheel Keep Spinning on Big Content Spending?

    Amazon has agreed to acquire Elemental Technologies, a video-encoding and content delivery technology company, to augment its cloud services offerings. Elemental is being acquired by Amazon Web Services, a subsidiary of the e-commerce company. Terms of the deal were not disclosed. Amazon is paying about $500 million in cash for Elemental, according to a report […]

  • Selena Gomez

    Woman Charged in Selena Gomez Email Hacking

    Amazon has agreed to acquire Elemental Technologies, a video-encoding and content delivery technology company, to augment its cloud services offerings. Elemental is being acquired by Amazon Web Services, a subsidiary of the e-commerce company. Terms of the deal were not disclosed. Amazon is paying about $500 million in cash for Elemental, according to a report […]

  • Anderson Cooper

    Anderson Cooper Takes CNN to Facebook in Quest for Mobile Views

    Amazon has agreed to acquire Elemental Technologies, a video-encoding and content delivery technology company, to augment its cloud services offerings. Elemental is being acquired by Amazon Web Services, a subsidiary of the e-commerce company. Terms of the deal were not disclosed. Amazon is paying about $500 million in cash for Elemental, according to a report […]

  • No Merchandising. Editorial Use Only. No

    The Beatles' 'Yellow Submarine' Now Streaming Exclusively on Amazon Prime Video

    Amazon has agreed to acquire Elemental Technologies, a video-encoding and content delivery technology company, to augment its cloud services offerings. Elemental is being acquired by Amazon Web Services, a subsidiary of the e-commerce company. Terms of the deal were not disclosed. Amazon is paying about $500 million in cash for Elemental, according to a report […]

  • YouTube TV

    YouTube TV Offers One-Week Credit After World Cup Outage

    Amazon has agreed to acquire Elemental Technologies, a video-encoding and content delivery technology company, to augment its cloud services offerings. Elemental is being acquired by Amazon Web Services, a subsidiary of the e-commerce company. Terms of the deal were not disclosed. Amazon is paying about $500 million in cash for Elemental, according to a report […]

  • Gawker Logo

    Gawker Website Acquired by Bustle Owner for $1.35 Million in Bankruptcy Auction

    Amazon has agreed to acquire Elemental Technologies, a video-encoding and content delivery technology company, to augment its cloud services offerings. Elemental is being acquired by Amazon Web Services, a subsidiary of the e-commerce company. Terms of the deal were not disclosed. Amazon is paying about $500 million in cash for Elemental, according to a report […]

  • Katy Perry

    Big Twitter Accounts See Follower Numbers Drop After Fake-User Purge

    Amazon has agreed to acquire Elemental Technologies, a video-encoding and content delivery technology company, to augment its cloud services offerings. Elemental is being acquired by Amazon Web Services, a subsidiary of the e-commerce company. Terms of the deal were not disclosed. Amazon is paying about $500 million in cash for Elemental, according to a report […]

More From Our Brands

Access exclusive content