Telstra Corporation Announces Ooyala Impairment

Telstra today announced it expects to make a non-cash impairment and write down the carrying value of Ooyala, its US-based intelligent video business, to zero.

Following completion of its impairment testing process for the half year ended 31 Dec 2017, Telstra expects to recognise an impairment charge of A$273 million against goodwill and other non-current assets in its results for that period to write the company value down to zero. This is subject to Audit and Risk Committee and Board review and approval.

Telstra acquired 9 per cent of Ooyala in 2012 increasing its holding to 98 per cent in 2014 as part of a broader strategy to provide end-to-end solutions for broadcasters and over-the-top companies. Telstra identified challenges in the business and changing market dynamics 18 months ago and impaired the business at the time of its 2016 results.


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