Yahoo (YHOO) said Friday in a blog post that it acquired video streaming platform RayV for an undisclosed amount. RayV is an Israeli-based startup that helps manage video streaming on mobile and other platforms. Last month, The Wall Street Journal had also hinted that the web portal was in talks to buy the eight-year old company which was founded by Omer Luzzatti and Ofer ShemTov in 2005 and became well-known for its HD quality videos on mobile devices.
RayV’s goal has been that of “building a revolutionary video distribution platform that would provide a better video experience for viewers over the Internet, while easing the distribution process for content creators,” the firm said in a statement posted on its website.
Under the terms of the deal, RayV’s team will now join Yahoo’s Cloud Platforms and Services unit and its technology, which is said to rival that of Google’s (GOOG) YouTube, will be used to strengthen Yahoo’s infrastructure.
In an official post P.P.S. Narayan, VP of Cloud Platforms and Services stated, “Yahoo is focused on growing video users and monthly streams, and while we’re only getting started, we’re very focused on this in 2014. This deal demonstrates our dedication to accelerating our video strategy and boosting our underlying technology infrastructure in the space.”
The new acquisition is great news for Yahoo, especially after its attempts of strengthening its video offerings by acquiring both Hulu and DailyMotion failed. The Internet giant is also said to have bid $250 million for YouTube content provider Fullscreen Inc. last month as its efforts to compete with Google’s video-sharing website continue to intensify.
Shares in the $36 billion company gained 2.60% on Friday to close at $35.43. Yahoo shares are down more than 12% year-to-date but up 30% y/y.