×
You will be redirected back to your article in seconds

IBM Acquires Ustream for Up to $150 Million, Powering Into Live-Streaming Video

Ustream customers include Facebook, HBO, Discovery Channel and Sony

IBM has acquired Ustream, a provider of live and on-demand video-streaming services, expanding Big Blue’s reach in delivering and managing video for media companies and enterprises.

The deal is worth about $150 million, including potential future payments if Ustream hits performance targets, according to a source familiar with the deal. IBM is paying $130 million for Ustream excluding earn-out provisions, Fortune and the Wall Street Journal reported. (IBM said terms of the deal are not being disclosed.)

Ustream, founded in 2007, had raised about $60 million from investors including DCM Ventures and SoftBank Capital. Customers include Facebook, HBO, Nike, Discovery Channel, Cisco, Sony, Intuit, NASA, Mazda and Samsung. The company claims it powers 2 million broadcast streams per month, 80 million viewers per month, ranging from corporate keynotes to live music concerts.

With the deal, IBM has formed the Cloud Video Services unit, which combines assets from Ustream and the recent acquisition of video-on-demand management firm Clearleap. The unit also will create solutions integrating technologies from other IBM investments, including Aspera and Cleversafe. IBM Cloud Video Services will be led by GM Braxton Jarratt, former CEO of Clearleap.

“Video has become a first-class data type in business that requires accelerated performance and powerful analytics that allows clients to extract meaningful insights,” said Robert LeBlanc, senior VP of IBM Cloud. “Aligning our expansive video and cloud innovations into an integrated unit will create opportunities for clients to take advantage of this medium in the most strategic way possible.”

Big Blue sees Ustream bulking up its cloud-based services biz. In 2015, IBM Cloud revenue totaled $10.2 billion, up 57% year-to-year. The tech company estimates that cloud-based video will represent a $105 billion market opportunity by 2019.

Ustream is based in San Francisco, with a development office in Budapest, Hungary, and data centers in San Jose, Calif., Amsterdam and Tokyo. IBM said it will integrate Ustream’s development platform into Bluemix, its open cloud development platform.

Separately, last October IBM acquired the Weather Company’s business-to-business properties, with the Weather Channel remaining a separate entity.

More Digital

  • Neilsons Measurment Problems TV Digital

    AT&T's Ad-Tech Unit Xandr Buys Clypd To Help Place TV Commercials More Precisely

    Xandr, the AT&T ad-technology unit, has purchased a new company that helps advertisers use data to place commercials in front of the audiences most likely to want to watch them The AT&T division said Friday it had acquired clypd, a company that helps advertisers move forward in a growing desire by Madison Avenue to run [...]

  • AT&T Logo Building

    AT&T TV Now Price Hike Coming Next Month, Base Package to Cost $65

    AT&T is instituting a substantial price hike for its live TV streaming service AT&T TV Now: Customers who have subscribed to the service’s basic “Plus” package will see their bill go up by $15, to a total of $65 per month, starting next month. The telco has started to inform existing subscribers about the price [...]

  • Disney-Family-Movies

    Disney Family Movies SVOD Service Is Shutting Down Ahead of Disney Plus Debut

    After 11 years, Disney is pulling the plug on Disney Family Movies On Demand — with the service’s shutdown coming just days before the launch of the Mouse House’s Disney Plus. Disney Family Movies, which cost between $5-$10 per month, has been available via pay-TV providers in the U.S., including Comcast Xfinity, Charter Communications, Verizon [...]

  • Amazon Orders ‘All or Nothing: Tottenham

    Amazon Orders ‘All or Nothing: Tottenham Hotspur’ Soccer Doc Series

    Amazon has greenlit a new “All or Nothing” sports documentary series, this time following London-based soccer team Tottenham Hotspur. “All or Nothing: Tottenham Hotspur” will follow a year in the life of the team, charting the ongoing 2019-20 season. The squad made it to the final of the European Champions League last year, losing to [...]

  • Jeffrey Katzenberg

    Jeffrey Katzenberg's Quibi Picks T-Mobile as Wireless Launch Partner

    Quibi, the short-form mobile TV service founded by Jeffrey Katzenberg, announced a pact with T-Mobile to be the official telecommunications partner for its April 2020 launch. T-Mobile will be the exclusive wireless distributor when Quibi launches next spring. However, the arrangement doesn’t mean only T-Mobile customers will be able to subscribe to Quibi: Anyone will [...]

  • Steve Kornacki

    Steve Kornacki, Chris Matthews Stand at Center of New NBC News Podcasts

    After vowing to press ahead more directly into the world of podcasts, NBC News is readying the launch of three additional audio shows centered around politics. “Article II: Inside Impeachment” will help listeners understand the impeachment process. The program, new episodes of which are slated to debut Mondays, Wednesdays and Fridays as people head for [...]

More From Our Brands

Access exclusive content