<article>Australian telco company <a href="https://www.dealstreetasia.com/tag/Telstra/">Telstra</a> has sold its video technology company, <a href="https://www.dealstreetasia.com/tag/Ooyala/">Ooyala</a>, to the latter’s management team, after writing down the value of the US-based company to zero.</article>

Australian telco company <a href="https://www.dealstreetasia.com/tag/Telstra/">Telstra</a> has sold its video technology company, <a href="https://www.dealstreetasia.com/tag/Ooyala/">Ooyala</a>, to the latter’s management team, after writing down the value of the US-based company to zero.
In an official announcement, which did not disclose any financial details, Telstra said it will remain a valued go-to-market partner and customer for Ooyala following the sale.
Seen as a startup that could challenge the dominance of Youtube, Ooyala was bought by Telstra in two stages in 2012 and 2014, during which the company spent a total of A$500 million to eventually fully acquire the US company, which develops software to stream videos on smartphones, computers and tablets.
However, by 2016, the value of Ooyala dropped to less than A $250 million following a disappointing couple of years, and in February 2018 it announced that it would write off the remaining book value of the video company.
Following the acquisition of Ooyala, the company’s management team says it looks forward to continuing its world-class support of its customers around the globe and expects continued revenue growth fueled by the market adoption of its flagship product 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.
“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,” said Ooyala CEO Jonathan Huberman.
Ooyala Flex Media Platform enables partners and customers to connect and orchestrate the entire content supply chain. Its users include big media brands such as Audi, Chelsea FC, Dell, National Rugby League of Australia, PGA, Starhub and Sky Sports.
Despite being unsuccessful in its bet in Ooyala, Telstra will be looking to invest in new tech companies in the US through a new fund it launched earlier this year with private equity giant HarbourVest Partners. The fund, reportedly valued at $500 million, focus on early- to late-stage venture investment opportunities in the US, Asia and Australia.
Also Read:
<a style="color: #ff0000;" href="https://www.dealstreetasia.com/stories/telstra-harbourvest-fund-100991/">Telstra forms new VC fund with HarbourVest, said to be worth $500m</a>
<a style="color: #ff0000;" href="https://www.dealstreetasia.com/stories/lenders-sbi-videocon-overseas-108401/">India: SBI-led lender consortium puts Videocon unit’s overseas assets on block</a>
<a style="color: #ff0000;" href="https://www.dealstreetasia.com/stories/telstra-muru-d-singapore-100932/">Telstra’s muru-D accelerator discontinues Singapore programme</a>
&nbsp;

In official announcement, which did not disclose any financial details, Telstra said it will remain a valued go-to-market partner and customer for Ooyala following the sale.

Australian telco firm Telstra sells US video tech company Ooyala

Bring stories like this into your inbox every day.

Sign up for our newsletter - The Daily Brief

Australian telco firm Telstra sells US video tech company Ooyala

Start your deal-making journey now!

Bring stories like this into your inbox every day.

Sign up for our newsletter - The Daily Brief