Amazon bought Elemental Technologies for $500 millions to get into video streaming
SEATTLE, WA- Amazon.com Inc. (NASDAQ: AMZN) Amazon has realized that the video streaming business is going to turn into a very profitable one soon. For that reason, Amazon’s brand, the Amazon Web Services, has purchased the Portland, Oregon-based video streaming infrastructure company, Elemental Technologies, for the price of US$500 million. No further details have been released to the public concerning the terms of the deal.
” Amazon.com Inc. bought Elemental Technologies for US$500 million.”
Amazon Web Services is one of the biggest and the best public clouds found today and this deal will allow it to add more variety on its services and offer companies on-premise data centers.
Elemental Technologies is a company that has many world-known and respected customers all around the globe, including Ericsson, Comcast, ABC, BBC and ESPN
Gartner Inc. analyst Akshay Sharma said:
“Elemental has some impressive carrier wins and video media content provider wins. They provide cloud-based video solutions like transcoding technology that used to require dedicated hardware, but via their technology can run on standard hardware, like in Amazon Web Services.”
Sharma also referred to the general expanding policy that Amazon is showing and added:
“With Amazon Prime, Amazon buying Twitch, they are becoming a media player as well, and Elemental Technologies can be a key element in this equation. While there are other vendors in this new SDV [software-defined video] space, Elemental Technologies is unique in being the first to bridge the cloud, with networking supporting 4K UHD TV with deployments at cable multisystem operators (MSOs), over-the-top (OTT) providers and CSPs.”
The above statement could give us a pretty good understanding of this deal. We also have to note that Elemental Technologies is a company that has many world-known and respected customers all around the globe, including Ericsson, Comcast, ABC, BBC and ESPN.
Even though some of Amazon’s purchases have not been completed first, this one is probably the fifth-biggest deal the company has made. The first four are apparel and shoe retailer Zappos for a whopping $1.2 billion, Twitch for $970 million, Kiva Systems for $775 million and Quidsi for $545 million.