Amazon Web Services Buying Elemental for a Reported $500M
News broke this afternoon that one of the online video industry's biggest players—Amazon Web Services—will acquire another of the industry's biggest players—Elemental Technologies. While no amount was given by the two companies, The Information cited an anonymous source that Amazon is paying $500 million in cash.
In its announcement, Amazon says the acquisition combines the AWS Cloud platform with Elemental's software-defined video solutions, offering media and entertainment companies a range of possibilities for economically scaling their video infrastructures. It notes that Elemental has over 700 media customers and powers the BBC iPlayer, HBO Go, CNNGo, ESPN Score Center, and others.
“Together, we’ll collaborate on deeper technology integrations and new infrastructure offerings so that media and entertainment companies can evolve their hybrid and cloud models as they continue to innovate their services for viewers,” says Andy Jassy, senior vice president of Amazon Web Services.
Portland, Oregon-based Elemental will continue to run under its own brand. It will create deeper integrations with AWS as part of the acquisition.
"The combined entity will afford customers more choice and infrastructure scalability than ever," wrote Elemental's CEO and co-founder Sam Blackman in a letter to industry colleagues. "Make no mistake: The key focus for the combined AWS and Elemental entity will be delighting customers with best-in-class video quality, technology innovation, and service reliability regardless of where they choose to host their video infrastructure."
The acquisition is expected to close in the fourth quarter of 2015.
If you see friends from Elemental at IBC, tell them they're buying the drinks.
Kaltura pledges to remain independent, calling it the company's mission, but speculates about which of its colleagues' companies could be the next to be bought.
12 Sep 2015
At NAB, Elemental will show a bandwidth-saving solution that lets operators simplify creating multi-codec multi-delivery video.
25 Mar 2015
Elemental co-founder Sam Blackman talks networking and video workflows using off-the-shelf hardware rather than specialized processors
25 Nov 2014
It's a mobile video world, and Elemental promises to ease video complexity, add time-shifting services, and reduce costs with Delta.
12 Sep 2014
The software video processing developer powers half a dozen 4K demos at NAB, is partnering with Ericsson EVE, and claims to be the fastest growing vendor around
05 Apr 2014
Guiding attendees from the backend setup to the viewer experience, two experts offered HLS specifics at Streaming Media West.
28 Jan 2014
Companies and Suppliers Mentioned