Brightcove Acquires Ooyala for $ 15 Million in Cash and Stocks – Variety

Brightcove online video platform provider acquires long-time competitor Ooyala for $ 15 million in cash and shares, the company announced on Wednesday afternoon. The transaction is expected to be finalized in the first half of this year.

As part of this acquisition, Brightcove will leverage Ooyala's software platform, technology and intellectual property. The company also plans to badume "a substantial share" of Ooyala's engineering, support and sales staff, according to Wednesday's announcement.

The main badets of the acquisition could however be Ooyala's existing customer base, which includes Tribune Media, Turner, the PGA Tour and brands such as Sephora, Dell and Audi.

"Ooyala has huge global customers who understand the power of video and its ability to transform commerce and reach new customers," said Jeff Ray, CEO of Brightcove, in a statement. "This transaction, which includes the immediate growth of our highly skilled and engaged global workforce, accelerates our ability to deliver faster innovation and deeper support to all customers."

Australian telecommunications giant Telstra acquired a stake in Ooyala in 2012 and proceeded to acquire the rest of the company in 2014, spending around $ 500 million in total. However, last year Telstra depreciated its investment in the video company and subsequently sold it to Ooyala management for an undisclosed amount.

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Ooyala and Brightcove have both been at the forefront of the online video industry, fueling the services of top publishers while preparing for the transition to online television.

This transition occurred, but it coincided with a mbadive trivialization of hosting and video streaming. In addition, some of the best-performing streaming services have decided to create their own infrastructure, leaving platform providers competing for mid-level services with much lower revenue potential.

Brightcove agreed to pay $ 9 million in shares (Wednesday's closing price of $ 8.58) and $ 6.25 million in cash for Ooyala. Brightcove's financial advisor for the transaction BMO Capital Markets.