Telstra is taking a controlling stake in US video streaming and analytics platform Ooyala as it looks to expand beyond its traditional telecommunications business.
The telco will pay $US270 million ($A292.13 million) to lift its stake from 23 per cent to 98 per cent, having already invested $US61 million over the past two years.
Silicon Valley-based Ooyala provides a cloud-based platform for media companies to stream their video content to devices such as smartphones and smart TVs.
Inbuilt analytics deliver users recommendations, personalised content and advertising.
"Ooyala is one of the industry's fastest-growing personalised video platform companies," Telstra CEO David Thodey said in a statement.
He said the acquisition will allow Telstra to "deliver platforms and services on which the next generation of TV and video will be built".
It's the first buy made by Telstra's Global Applications & Platforms group, which is tasked with gaining the telco a foothold in emerging technologies.
But the fragmented nature of the cloud-based video market makes it a risky one, said Foad Fadaghi, a senior analyst at Telsyte.
Ooyala has some significant competitors such as the Nasdaq listed Brightcove, which has a market capitalisation of $US200 million, he said.
"There are also European competitors and many broadcasters have chosen from a range of providers."
Ooyala was founded in 2007 and employs 330 people. Its digital platform is used by companies including ESPN, Foxtel, News Corp and The Washington Post.
Ooyala chief Jay Fulcher will continue in his role and the company will operate independently of Telstra.
The transaction is expected to be completed in the next 60 days, pending the approval of US regulators.
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