IBM, one of the world's most respected tech companies, has announced that it has purchased video live-streaming company Ustream. With the takeover, the streaming company would become part of IBM's new Cloud Video Services division, according to USA Today.

Though the price of the takeover has yet to be revealed, the deal is expected to be valued at about $130 million in cash, plus possible cash-outs and funds for employee retention packages, Fortune reported. 

Ustream, a San Francisco-based company, specializes in live and on-demand video. The firm currently delivers video streaming services to a number of high-profile clients, including NASA, Facebook, Samsung, and even The Discovery Channel, reported Relaxnews.

The acquisition of Ustream does make sense, however, since the two companies have been in a close relationship since at least April 2014, when Ustream was the only video service included with the launch of the centenarian's cloud marketplace.

Regarding the acquisition, however, IBM has not given the official word as of yet if it plans to utilize Ustream for the enterprise or for general consumers, according to Engadget. Ustream has been a prominent streaming service for enterprises in the past, but IBM might opt to change that.

Ustream has received over $60 million in investments during its operations.

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