×
You will be redirected back to your article in seconds

Brightcove Acquires Ooyala’s Platform Business for $15 Million

Updated. Online video platform provider Brightcove is acquiring longtime competitor Ooyala’s video platform business for $15 million in cash and stock, the company announced Wednesday afternoon. The transaction is expected to close in the first half of this year.

As part of the acquisition, Brightcove will get its hands on Ooyala’s video platform, as well as related technology and intellectual property. The company also intends to take on “substantial portions” of Ooyala’s staff across engineering, support and sales, according to Wednesday’s announcement.

The prime jewels of the acquisition may however been Ooyala’s existing customer base, which includes Tribune Media, Turner, the PGA Tour, and brands including Sephora, Dell and Audi.

“Ooyala has tremendous global customers who understand the power of video and its ability to transform business and reach new customers,“ said Brightcove CEO Jeff Ray in a statement. “This transaction, which includes immediately growing our highly skilled and committed global workforce, accelerates our ability to deliver faster innovation and deeper support for all customers.”

Ooyala will keep operating its Flex Media Platform as a separate company. Said Ooyala CEO Jonathan Huberman: “With this transaction we’re ushering in an exciting new chapter for our company, as we continue to focus and expand on Ooyala’s flourishing workflow and media-asset-management solutions, centered around our highly successful Ooyala Flex Media Platform, which continues to grow rapidly and is serving an expanding roster of film and TV studios, networks and broadcasters globally.”

A company spokesperson said that the company was still determining how many staffers would remain at Ooyala, and how many would transition to Brightcove.

Australian telco giant Telstra bought a stake in Ooyala in 2012, and proceeded to buy the rest of the company in 2014, spending around $500 million combined. However, by last year, Telstra had written down its investment in the video company, and subsequently proceeded to sell it to Ooyala’s management for an undisclosed amount.

Both Ooyala and Brightcove were once on the forefront of the online video business, powering the services of premium publishers while preparing for a transition to online-based TV viewing.

That transition happened, but it coincided with a massive commoditization of video hosting and delivery. What’s more, some of the most successful streaming services decided to build their own infrastructure, leaving platform providers to compete for mid-level services with much less revenue potential.

Brightcove agreed to pay $9 million in stock (at Wednesday’s closing price of $8.58) and $6.25 million in cash for Ooyala’s video platform business. Brightcove’s financial advisor on the transaction was BMO Capital Markets.

Update: 2/15: This post was updated with a statement from Ooayla, and additional information on the future of the company.

Popular on Variety

More Digital

  • Disney-Plus-Logo

    Disney Plus Launch Snafus: What Went Wrong?

    For some users, Disney Plus was a Disney Minus on its big launch day Tuesday. In its Nov. 12 debut, the service was beset by multiple problems, including Disney Plus customers being unable to log in to the service, access specific content, or use certain streaming devices — while some who called Disney’s customer service [...]

  • YouTube Taps Shana Tepper as Head

    YouTube Taps Shana Tepper as Head of Entertainment Communications

    YouTube has tapped Shana Tepper as its head of entertainment communications. In her new role, Tepper will lead all press and communications strategies for YouTube Originals series and specials focused on personalities, artists and learning. Tepper joins YouTube from Viacom, where she most recently served as vice president of communications for Comedy Central and Paramount [...]

  • Richard Plepler HBO

    Former HBO Chief Richard Plepler Close to Signing Apple TV Plus Production Pact

    Former HBO chief Richard Plepler is close to signing an exclusive production pact with Apple TV Plus. Apple declined to comment and Plepler could not immediately be reached for comment. It’s understood that Plepler plans to launch a boutique production company designed to focus on a handful of high-profile projects. Among his advisors in pulling [...]

  • Sonos Spotify partnership

    Sonos Speakers Get Free Spotify Streaming

    Sonos owners just got access to another source for free music: The smart speaker maker has struck a deal with Spotify to stream Spotify’s free tier to its users, both companies announced Tuesday. Free Spotify streams are going live on Sonos devices with the latest Sonos software update, which also includes an updated version of [...]

  • looking glass display

    Looking Glass Factory Unveils 8K Holographic Display

    Holographic display hardware startup Looking Glass Factory unveiled its first real product Tuesday: the Looking Glass 8K Immersive Display aims to provide companies with a way to view 3D assets as holograms, without the need to use VR headsets. The product is being sold into the enterprise market, but the company also has plans to [...]

  • Star Wars The Mandalorian

    Why Wall Street Is Feeling Bullish as Disney Plus Blasts Off

    Bob Iger has presided over many launches during his 14 years as Disney CEO: a theme park in Shanghai, state-of-the-art cruise ships, “Star Wars”- and “Avatar”-themed immersive attractions and even a cinematic universe requiring billions of dollars of investment in Marvel movies. But nothing in his tenure has drawn the level of scrutiny that has [...]

  • Worldwide XR roster

    Team Behind Digital James Dean Forms New Company to Resurrect Other Legends (EXCLUSIVE)

    The team that helped resurrect James Dean with visual effects for an upcoming Vietnam war movie isn’t done creating digital versions of famous actors and other celebrities: Intellectual property licensing specialist CMG Worldwide has merged with immersive content creation studio Observe Media to form Worldwide XR, a new company that aims to bring digital humans [...]

More From Our Brands

Access exclusive content