Telstra is reportedly gearing up to list its video startup, Ooyala, in the US in what could be a multi-billion-dollar float.
The Australian reports the telco is working towards taking Ooyala public on the either the NYSE or Nasdaq.
In August Telstra upped its stake in the startup from 23% to 98%, forking out a further $US270 million on top of the $US61 million it invested previously. It was a move which signalled the telco was transitioning to become a fully-fledged media company.
Timing on the potential listing hasn’t been confirmed, but Ooyala CEO Jay Fulcher said it was inevitable.
“Our intent is to take the company public. Over time this will become a multi-billion market-cap business,” Mr Fulcher told The Australian.
“That is the expectation from Telstra and it’s certainly the expectation from Ooyala because we’ve always known that we have a tiger by the tail here.
“I think everyone’s agenda is to do that as soon as it makes sense, and we are not multiple years away from being able to do that. We have the size, the scale, the customers and we are starting to have the predictability around our business that is necessary to make it possible.”
Since upping its stake, Telstra has spent a further $200 million to expand Ooyala. Fulcher said the company beat its $65 million revenue forecast last year but, like many growing tech companies, it is yet to turn a profit and it’s not a focus right now.
“Profitability is something that we have not been focused on, ever. To the degree that we get potentially cast as a typical Silicon Valley company, then I would say yes, we have been much more focused on growth than profitability,” Fulcher said.
“But we are also a company that has frankly executed very well on every dimension, including on the profitability front.”
There’s more here.