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Box buys cloud storage startup for streaming technology

Juan Carlos Perez | June 17, 2014
Box has acquired Streem, a cloud storage and file-sharing startup that specializes in large media files and that has developed innovative technology for streaming that type of content.

Box, launched in 2005, has carved out a space in the enterprise cloud storage and file-share market, but it currently faces savage competition from giants like EMC, IBM, Google and Microsoft, and from specialists like Dropbox, Accellion, Egnyte and YouSendIt.

Box, which filed for an IPO in March but hasn't yet gone public, is losing money and doesn't foresee turning a profit in the near future. It closed its fiscal year Jan. 31 with revenue of US$124.2 million, up 111 percent year over year, and a net loss of $168.6 million, compared with a net loss of $112.6 million in the previous fiscal year. It has about 34,000 paying corporate customers, 40 percent of them Fortune 500 companies. However, only 7 percent of its 25 million end users pay for the service.

Streem was backed by Y Combinator, an early stage investor. Box didn't disclose financial terms of the deal.

Streem offered the service free to beta testers. It planned to charge $20 per user, per month, with a 15 percent discount for customers who signed up for annual subscriptions. The company was still in its beta testing period when Box acquired it, so it hadn't started charging customers yet, according to the Box spokesman.

 

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