Ooyala managers buy back video player business after $500M burnout
October 16, 2018
The managers of Ooyala Inc. said on Tuesday that they are buying the San Jose-based business back from Telstra, which earlier this year wrote down its $500 million investment in the video streaming company.
Terms of the deal were not disclosed. Telstra bought Ooyala for about $270 million in a pair of transactions in 2012 and 2014..Ooyala's management team said it will continue to partner with Australia-based Telstra as it powers the content supply chain of customers who include Audi, Chelsea FC, Dell, National Rugby League of Australia, PGA, Starhub, Sky Sports and Turner."We will continue to invest in Ooyala Flex Media Platform to increase our market-leading position in video streaming and media logistics," Ooyala CEO Jonathan Huberman said in the announcement of the deal. "In addition, leveraging our resources and in partnership with private equity investors, we are actively exploring acquisition opportunities to further accelerate Ooyala’s growth.”
Ooyala was founded in 2007 when there weren’t many options for publishers who wanted to host and monetize their own videos online. The company’s first media player launched in 2009, and quickly found more than 500 customers, collectively delivering video to more than 220 million unique monthly viewers.
The company was founded by Bismarck and Belsasar Lepe, who are brothers, and their friend and fellow Googler Sean Knapp. Bismarck Lepe and Knapp both left Ooyala to launch their own startups, while Belasar Lepe remained as the company’s senior vice president of products and solutions.