Computer giant IBM confirmed this morning that it is acquiring live and on-demand video streaming service Ustream.
Financial terms were not disclosed, but Fortune, which first reported on the purchase, said it is expected to be worth $130 million in cash, with additional potential earn-outs and employee retention packages
Ustream will join the newly-formed IBM Cloud Video Services unit combining assets from IBM’s R&D labs and earlier acquisitions including Clearleap, Aspera and Cleversafe.
Led by general manager Braxton Jarratt, the unit will target what the company estimates is a $105 billion opportunity in cloud-based video services and software.
“Video has become a first-class data type in business that requires accelerated performance and powerful analytics that allows clients to extract meaningful insights,” said Robert LeBlanc, SVP of IBM Cloud, in a statement. “Aligning our expansive video and cloud innovations into an integrated unit will create opportunities for clients to take advantage of this medium in the most strategic way possible.”
The Ustream portfolio includes the Ustream Development Platform, which enables clients to create custom video apps to run video on any device and embed video into any application. It also provide real-time social sentiment analytics to gauge audience reactions to the live streaming content. IBM will integrate the technology into its Bluemix hybrid cloud development platform.
The Ustream portfolio also features several video solutions, including Ustream Demand, which enables marketers to collect and automate leads into marketing workflows and manage live and on-demand videos from a single dashboard, and Ustream Pro Broadcasting, which offers live video streaming at scale.
Founded in 2007, Ustream provides services to more than 80 million viewers and broadcasters. Its clients have included HBO, Sony, Panasonic, Samsung, Logitech, CBS News, “PBS NewsHour,” Viacom, and IMG Media. The company is headquartered in San Francisco, and has a development office in Budapest, Hungary, and data centers in San Jose, Calif., Amsterdam and Tokyo.