This story was updated on February 15 to reflect Brightcove is purchasing only Ooyala’s online video platform.
Brightcove, a video cloud solution for managing, delivering and monetizing video content, announced on Wednesday it is entering an agreement to acquire the online video platform (OVP) side of Ooyala’s business for $15 million — $6.25 million in cash and the remainder in Brightcove shares. The deal is expected to close in the first half of 2019. Following the acquisition, Ooyala will continue to operate its Flex Media Platform, a workflow and media-management solution.
Why you should care
Video marketers and publishers use Brightcove to manage their brands’ video inventory. With the acquisition of Ooyala’s OVP, Brightcove will be able to offer clients a more comprehensive video management and technology platform while significantly growing its customer base and market reach.
According to the announcement, Brightcove will acquire all of Ooyala’s OVP solutions, including the Backlot, Analytics and Live platforms, along with the company’s underlying IP and associated patents.
“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. We also will increase our market reach and further strengthen our ability to secure new business in key target markets,” said Brightcove CEO Jeff Ray.
More on the news
In addition to acquiring the OVP side of Ooyala’s business, Brightcove reports it will also take ownership of “substantial portions” of Ooyala’s engineering, support and sales staff, in addition to its customer, reseller and partner relationships.
The acquisition comes on the heels of Brightcove’s announcement of its fourth quarter financial results for 2018. Company revenue for last year reached $164.8 million, a six percent year-over-year increase.
Ooyala CEO Jonathan Huberman said the deal ensures Ooyala’s customers will receive a “world-class experience” and is pleased customers will get to work directly with a market leader. The CEO offered the following comment on the business Ooyala will retain: “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.”
This story first appeared on MarTech Today. For more on marketing technology, click here.
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