American multinational technology corporation IBM is said to be in talks to acquire the partially Hungarian-founded live video streaming platform UStream, according to information obtained by Fortune magazine.
The acquisition is expected to be valued at around $130 million in cash, plus possible earn-outs and employee retention packages, the website reports.
The relationship between IBM and UStream dates back to at least April 2014, when Ustream was the only video service included in the launch of IBM’s cloud marketplace. Later that year, the two companies announced that Ustream technology would be used to incorporate video streaming capabilities into Bluemix, IBM’s open cloud development platform. A formal acquisition may make it easier for developers to build live video streaming features—such as enterprise collaboration—on the IBM cloud. There also could be Watson applications.
Silicon Valley-based Ustream has raised nearly $50 million in venture capital, although its latest funding round was in late 2011. Investors include DCM, Eastward Capital Partners, Labrador Ventures, KT Corp., SoftTech VC, SoftBank, Recruit Strategic Partners, Wasabi Ventures, and Western Technology Investment.
Founded in 2007, the company provides video streaming services to more than 80 million viewers and broadcasters. It is based in San Francisco and has more than 180 employees in offices in San Francisco, Los Angeles and the Hungarian capital Budapest.
IBM and Ustream were unavailable for comment concerning the apparent deal.
via index.hu and fortune.com