IBM to pay $130m to ac­quire video startup Us­tream

The Pak Banker - - COMPANIES/BOSS -

SAN FRAN­CISCO: IBM is buy­ing live video stream provider Us­tream to help sell more video ser­vices to clients in­clud­ing the Na­tional Foot­ball League, HBO and the Food Net­work, through its cloud plat­form.

With the ac­qui­si­tion, In­ter­na­tional Busi­ness Ma­chines Corp. will cre­ate a unit that com­bines Us­tream's ser­vices with re­lated tech­nolo­gies in­clud­ing those from pre­vi­ous pur­chases: multi-de­vice video de­liv­ery plat­form Clear­leap, data stor­age seller Clever­safe and file- trans­fer soft­ware provider As­pera.

IBM is spend­ing about $130 mil­lion to buy the startup, ac­cord­ing to a per­son with knowl­edge of the mat­ter, who asked not to be iden­ti­fied be­cause the terms are not pub­lic. IBM is plan­ning to use the com­bined tech­nolo­gies to help clients bring ex­panded video ser­vices for con­sumers and busi­nesses to more devices, said Brax­ton Jar­ratt, who served as chief ex­ec­u­tive offi- cer of Clear­leap and will lead the new IBM unit.

The mar­ket for cloud­based video soft­ware can reach $105 bil­lion by 2019, he said. Jar­ratt de­clined to com­ment on the deal price and Us­tream's rev­enue. The news of the ac­qui­si­tion was pre­vi­ously re­ported by For­tune.

The new unit will "al­low us to take ser­vices that HBO, the NFL, and other com­pa­nies are us­ing to­day global overnight," he said. "We'll have the abil­ity to stream video to any de­vice at a very high qual­ity." IBM isn't the only large tech com­pany to tap into the livestream­ing and video mar­kets.

Ama­ Inc. in 2014 bought Us­tream com­peti­tor Twitch -- made pop­u­lar by video game stream­ing -- for $970 mil­lion. Twit­ter Inc. last year pur­chased the livestream­ing mo­bile ap­pli­ca­tion Periscope for an undis­closed price. Face­book Inc. and Snapchat have both fo­cused on adding and im­prov­ing the video ca­pa­bil­i­ties in their ser­vices.

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