US-based live video streaming service Ustream has been acquired by computing company IBM, providing an exit to backers including human resources firm Recruit and telecommunications firms Softbank and KT Corporation.
The deal could be worth approximately $130m, according to Fortune, though that amount has not been officially confirmed.
Founded in 2007, Ustream operates a cloud-based platform that enables businesses and professional broadcasters to stream live and on-demand videos of their events, such as keynotes or music concerts.
IBM will integrate the company into its newly formed Cloud Video Services unit, which aims to provide a range of products based around video, including analytics, management, delivery and software development.
The unit is led by general manager Braxton Jarratt. He was formerly chief executive of premium video content services provider Clearleap, acquired by IBM last month.
Ustream received $6m in November 2011 from Softbank and DCM, a month after a $10m investment from KT as part of a strategic partnership to launch the platform in South Korea.
Ustream also raised $33.3m in series B funding earlier in 2011, with SoftBank leading the $21.3m first close in 2010. The extension was disclosed in a regulatory filing that also revealed the company had sought $75m for the round.
DCM led an $11.1m series A round in 2008 that also featured Band of Angels. Western Technology Investment and Band of Angels provided $2m in angel funding in 2007.
Recruit Strategic Partners, the corporate venturing arm of Recruit, was also a shareholder of Ustream, according to the firm’s website, though details about its involvement have not been revealed.
Eastward Capital Partners, Labrador Ventures, SoftTech VC and Wasabi Ventures had also backed Ustream, according to Fortune.