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IN PHOTO: A woman uses a Telstra public phone in suburban Sydney, August 9, 2012. Telstra, Australia's biggest phone company, posted a larger-than-expected 5 percent fall in second-half profit as declines in its traditional fixed-line business outweighed growth in fixed retail broadband and mobile revenue. REUTERS/Daniel Munoz

Australia's largest telecommunications and media company Telstra is reportedly preparing to float its video startup, Ooyala, in the United States, in what analysts predict could be a multi-million dollar IPO. However, the exact timing of the decision remains unknown.

According to The Australian, Telstra is planning to make the Silicon Valley-based Ooyala public on either the NYSE or NASDAQ. In August, Telstra reportedly increased its shares in Ooyala from 23 percent to 98 percent and invested an extra $369.34 million ($US270 million) in the start-up.

The company’s previous investment of $83.44 million ($US61 million) along with the new funding is indicative of its motive to become a full-fledged media company.

Ooyala CEO Jay Fulcher has confirmed the listing of Ooyala, citing it as inevitable. He also expressed his intentions of bringing the company public, and hopes it will grow to become a multi-billion business over time. “That is the expectation from Telstra and it’s certainly the expectation from Ooyala because we’ve always known that we have a tiger by the tail here,” he said.

Fulcher further said that everyone in the company is awaiting a billion turnover. He felt that the very size of the company, coupled with its scale and customers, would act as a catalyst in turning the assumption into reality, and most importantly to address the growing predictions about the growth of the business.

The Financial Review reported that Telstra has been involving in heavy spending to expand its subsidiary Ooyala, which provides online video technology products and services. Although the recent revenue posted by the company beat its revenue last year of $88.82 million ($65 million), it continues to wait for profits. However, Mr Fulcher said he preferred growth over profitability. “But we are also a company that has frankly executed very well on every dimension, including on the profitability front,” he added.

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