Limelight Networks to Acquire Yahoo's Edgecast
Content Delivery Network (CDN) company Limelight Networks announced its acquisition of Yahoo’s Edgecast group for approximately US$300 million in an all-stock transaction. Edgecast reportedly generated US$285 million in 2021, which puts the deal roughly one times the amount of the company’s annual revenue; combined, the two companies generated over US$500 million in 2021. The combined entity will be called Edgio, with Yahoo receiving 72.2 million shares of Limelight common stock, which put Yahoo’s ownership of Edgio at just under 32% (and could acquire an additional 12.7 million shares three years after closing for a total of 35.5% of Edgio). Apollo Funds, which owns Yahoo (acquired from Verizon), also contributed a US$30 million investment into Edgio via its ownership of Yahoo.
Combined Edgio’s network covers over 300 Points of Presence (PoPs) and an excess of 200 Tbps of capacity. Limelight networks, which had started to branch out into edge computing (after pushing ultra-low latency as a differentiator), will accentuate its current soluti…
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