Australia's Telstra buys video platform company Ooyala for $270 million

SYDNEY Mon Aug 11, 2014 6:37pm EDT

A woman uses a Telstra public phone in suburban Sydney, August 9, 2012.   REUTERS/Daniel Munoz

A woman uses a Telstra public phone in suburban Sydney, August 9, 2012.

Credit: Reuters/Daniel Munoz

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SYDNEY (Reuters) - Australia's largest telecommunications company Telstra Ltd said on Tuesday it had paid $270 million to buy out Silicon Valley-based video platform company Ooyala as part of a deeper push into digital media.

Telstra already owned 23 percent of Ooyala after investing $61 million over the past two years and will take its stake to 98 percent under the deal, assuming it is approved by U.S. regulators.

Ooyala provides cloud-based personalised video platform services to media companies including ESPN, News Corp and NBC Universal and is forecasting revenues of $65 million in 2014, according to a statement released by Telstra.

(Reporting by Lincoln Feast; Editing by Chris Reese)

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