Taylor Soper, Geekwire Editor
Amazon has agreed to acquire Portland-based video processing startup Elemental Technologies.
Founded in 2006, Elemental helps big media entities like HBO and ESPN seamlessly process video content across a full slate of mobile devices. The company enables more than 700 clients take video that was destined for legacy video distribution systems — IPTV, managed cable network, broadcast over the air, or satellite delivery — and convert that video for delivery over IP Internet protocol networks to multiscreen devices.
Amazon will incorporate Elemental’s technology into its Amazon Web Services (AWS) platform “to provide media and entertainment companies with a range of integrated solutions to efficiently and economically scale video infrastructures as the media industry increasingly moves to internet based delivery,” the company said in a press release. The two companies have been partners for the past four years.
“During this time we have been impressed by their penchant for moving fast and their long-term vision for software-defined video,” Jeff Barr, chief evangelist at Amazon Web Services, wrote in a blog post. “We quickly realized that we could work together to create solutions that spanned the entire video pipeline.”
Terms of the deal were not disclosed, but The Information reported the purchase price at around $500 million, which would be one of Amazon’s highest-priced acquisitions of all time.
A GeekWire source, however, pegs the deal closer to $330 million. We’ve reached out to Amazon and Elemental for more details and will update this story when we hear back.
Compared to some of its peers, Amazon has not made many acquisitions in its 21-year history, particularly as it relates to AWS. Other purchases include online shoe retailer Zappos ($928 million), robot systems maker Kiva Systems ($775 million), Diapers.com operator Quidsi ($545 million), and most recently game-streaming service Twitch ($970 million). Within AWS, Amazon has swooped up startups like ClusterK, AppThwack, Amiato, and 2lemetry.
Elemental will continue to operate as a standalone company. The acquisition is expected to close in the fourth quarter of 2015.
“The media and entertainment industry is at a unique inflection point, and as a part of Amazon, we will be in an even stronger position to help our customers delight their viewers globally,” Elemental CEO and co-founder Sam Blackman said in a statement. “We’re thrilled to have Amazon supporting our growth and ongoing commitment to our customers’ success.”
Read the entire story at: http://www.geekwire.com/2015/amazon-acquires-portland-based-video-processing-startup-elemental-technologies/