Amazon buys a video software company
September 4, 2015 01:08 PM
(Bloomberg)—Amazon.com Inc. is buying Elemental Technologies Inc., a provider of technology for distributing videos to web-connected devices, seeking to expand its portfolio of cloud-computing services.
The online retailer paid about $500 million for Elemental, a person with knowledge of the matter said, asking not to be identified because the information isn’t public. The Portland, Ore.-based company helps media and entertainment providers reformat video made for cable, satellite and airwaves broadcast so that clips can be transmitted to desktop computers, smartphones and tablets, Amazon said in a statement Thursday.
Amazon described the acquisition as a way to bring more video capabilities to Amazon Web Services, its Internet computing business. The web retailer also offers movies and TV shows, which may also benefit from Elemental’s technology.
“Elemental’s solutions makes it easy for media and entertainment companies to take live and on-demand video destined for traditional networks and reformat it for distribution to PCs, smartphones, tablets and TVs. We expect the acquisition to strengthen Amazon’s AWS offering for media players,” wrote Cantor Fitzgerald analysts Youssef Squali, Naved Khan and Kip Paulson wrote in a report.
Mary Camarata, spokeswoman for Seattle-based Amazon, No. 1 in the Internet Retailer 2015 Top 500 Guide, declined to comment on the price. Calls to Elemental’s public relations representatives weren’t returned.
Elemental has more than 700 media customers and supports over-the-top TV applications such as BBC’s iPlayer, CNNGo and ESPN ScoreCenter, and will continue to operate under its existing brand. The acquisition is expected to close in the fourth quarter of 2015, Amazon said.
The Information earlier reported the acquisition price.