HBO, Discovery Acquire Stakes in Cloud Graphics Company Otoy

Jon Stewart - Getty 2016 - H

The unspecified investments will "fuel development and distribution of original holographic content" in partnership with the company that has been working with Jon Stewart.

Time Warner's HBO and Discovery Communications have acquired stakes in L.A.-based cloud-graphics company Otoy.

Financial details and the size of the stake weren't disclosed.

The company last year said its first HBO project will see it work with Jon Stewart to develop new technology to allow him to produce timely short-form digital content, which will be refreshed on HBO Now multiple times throughout the day.

The stakes acquired are designed to allow the media companies to "forge the development of next-generation media and content publishing platforms and services," the partners said. "The investment will fuel development and distribution of original holographic content, enabling HBO and Discovery to deliver new entertainment experiences to consumers across TV, mobile, web, social and emerging wearable technologies such as virtual and augmented reality."

“Otoy is unbelievable! It’s a limitless mind-blowing creative platform,” said Jon Stewart. “My dream is to someday understand how they did it!!!”

“HBO prides itself on being at the forefront of entertainment, both in the exceptional content we produce, and in the ways we bring that content to consumers,” said Michael Lombardo, president of HBO Programming. “Otoy has a roadmap for the future of entertainment and technology. Their creativity and drive perfectly aligns with HBO’s. We couldn’t be more excited to invest in Otoy and to work together on original content and amazing experiences for years to come.”

“Otoy technology is a massive breakthrough, and we look forward to seeing it take VR and AR experiences, including Discovery VR, to a whole new level,” said Paul Guyardo, chief commercial officer at Discovery.

Otoy’s advisory board includes Eric Schmidt, executive chairman of Google parent company Alphabet, WME IMG co-CEO Ariel Emanuel, and others.