Dalet Acquiring Flex Media Platform; Is This the End of Ooyala?
Dalet, the French provider of media workflow and asset management solutions, announced it's acquiring the Flex Media Platform business from Ooyala. While the announcement didn't make it clear, this seems to spell the end of Ooyala.
The deal includes the Flex Media Platform and related contracts, as well as sales, marketing, software development, professional services, and customer support employees. Flex is a media workflow automation platform primarily available by subscription. Dalet says the acquisition lets it expand its media solutions to a wider market, and furthers its move into generating recurring revenue through subscription-based services.
"Dalet's proven products and services will enable Ooyala customers to augment and expand their Ooyala Flex Media Platform," says David Lasry, chief executive officer at Dalet. "We have a technology path forward supported by expanded, world-class professional services and customer success teams that can provide the know-how and expert guidance on scaling media operations to optimize the value of their Ooyala investment."
Current Ooyala customers include Audi, Fox Sports Australia, HBO Asia, National Rugby League, Turner Asia, and Sky Sports.
An investor report on Dalet's site breaks the sale down into a U.K. sale (the software and trademarks), a U.S. sale (U.S. customer contracts), and a French sale (contracts for the rest of the world), putting values of the three areas at $602,001, $1,720,961, and $2,586,166 respectively. Payment is being made in a combination of cash and company shares. Ooyala stands to make an additional $500,000 depending on the commercial performance of certain contracts. That puts the total value of the deal at $5.4 million.
What's unclear from today's announcements is whether or not this is the end of Ooyala. StreamingMedia.com reached out to Ooyala PR, who couldn’t comment. Completely written down by parent company Telstra, Ooyala was purchased by its management team in October 2018. Brightcove purchased the OVP division for $15 million in February 2019, leaving only the Flex division. With that now sold, it sounds like Ooyala's days are over. Look for official word from the company to come soon.
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