Amazon's cloud computing business, Amazon Web Services, is bulking up on video technology by buying the video-processing startup Elemental.
Elemental’s video processing technology is popular with several big name media companies and broadcasters like CNN, Comcast CMCSA , and HBO.
The company is known for using a type of computer chip known as a graphics-processing unit to help media companies and content providers stream video more smoothly across the web. Its technology helped to power the live streaming of the 2014 Winter Olympics so that viewers could watch the games across a variety of devices like television, smartphones, and personal computers.
Elemental will continue to operate as a separate brand from Amazon Web Services, according to the announcement.
“We have been working with Elemental to address shared customers in the Media & Entertainment business for the past four years,” Jeff Barr, chief evangelist for AWS, wrote in a blog post.
The deal makes sense for Amazon considering streaming video plays a big role in the technology giant’s business and viewers want to watch movies or sports events via the Internet without any hiccups ruining the experience.
The deal is expected to close in the fourth quarter.
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