It looks like Amazon has realised that video streaming is going to be the next big thing in the distant future and this is the reason why the company is so heavily investing in it. First they released a video streaming app with which people could watch videos offline by simply downloading it. However, now it looks like the company is fully determined to take their vide services to another level since they just acquired Elemental Technologies, which is a backend mobile video service company for a whopping $500 million.
This deal was arranged by the most profitable division of Amazon, the Amazon Web Services unit. This unit will simply incorporate Elemental’s technology in their own cloud infrastructure so as to offer mobile video services. Elemental Technologies main operation basically includes the development of high-speed video transcoding and encoding software so that multiscreen content can be delivered on various screens and devices. The company was founded in Portland, Ore. nine years ago and has clients ranging from BBC, ABC, Ericsson, Comcast and ESPN.
Sources also reveal that Elemental will retain their brand name. The company was able to garner $44 million in terms of investment from various groups of angel investors as well as venture capitalists. Amazon will be completing this deal by the end of this year.
Elemental is one of Amazon’s biggest acquisitions. The ecommerce giant acquired Zappos for a whopping $1.2 billion; Twitch for $970 million; cracked the Kiva Systems deal in 2012 for $775 million and also acquired Quidsi in 2010 for $545 million. At $500 million, Elemental Technologies is the fifth biggest acquisition for Amazon till date.