Amazon is spending $500 million to make internet videos a little better

Amazon's cloud infrastructure business, AWS, is buying the backend video service Elemental Technologies, the companies just announced in a press release.

The Information first reported the news, pegging the price at $500 million, though Amazon declined to comment on that number.

Elemental's technology helps big media and entertainment companies like CNN, ESPN, or HBO take their video - originally intended for cable or broadcast - and reformat it to work better on mobile and desktop.

So, it powers apps like HBO Go or ESPN's ScoreCenter.

"Together, we'll collaborate on deeper technology integrations and new infrastructure offerings so that media and entertainment companies can evolve their hybrid and cloud models as they continue to innovate their services for viewers," AWS boss Andy Jassy said in the company press release.

If The Information's price is correct, this will be one of Amazon's largest acquisitions to date, behind only Zappos in 2009 ($1.2 billion), Twitch in 2014 ($979 million), Kiva Systems in 2012 ($775 million), and Quidsi in 2010 ($545 million).

This news also comes not long after Cisco and Apple announced a new partnership that will make iPhones and their apps work better when they're connected to Cisco networks.

Disclosure: Jeff Bezos is an investor in Business Insider through hispersonal investment company Bezos Expeditions.