IBM confirmed it acquired UStream on Thursday as part of a plan to create a new cloud video services unit composed of three other acquisitions. The buyout of UStream means Big Blue can now push forward and develop an enterprise video streaming offering.
Founded in 2007, UStream is a free streaming service with paid professional versions for broadcasters. The service is popular in gaming circles. In 2013, the company announced the PlayStation 4 would support gameplay streaming directly from the console.
The other three acquisitions were Aspera, which IBM closed in January 2014, Cleversafe, which IBM bought in November 2015, and ClearLeap, which Big Blue acquired in December 2015.
Financial terms of the four deals were not disclosed, but Fortune reported that the UStream acquisition is worth $130 million. Former ClearLeap CEO Braxton Jarratt will now serve at the head of IBM's new division.
"IBM doesn’t shoot from the hip. One of the things we were impressed with when we started engaging with IBM [last fall] was there was a big master plan behind this acquisition,” Jarratt said to TechCrunch. "Sometimes companies make purchases in reaction to a move by a competitor. That was clearly not the case here. This was a well-thought-out plan to incorporate video into a [cohesive] cloud unit."
IBM reported its fourth-quarter 2015 earnings on Tuesday. The company posted an 8.5 percent drop in revenue to $22.06 billion, the 15th quarter in a row that sales declined.
Following the UStream acquisition news, IBM stock was up nearly 2 percent to $124.24 in late-morning trading as the markets recovered from Wednesday's sell-off.