Limelight acquires EdgeCast from Yahoo to become Edgio

As the name suggests, edge solutions are the new business focus

Limelight Networks announced on Monday that it has entered into a definitive agreement to acquire Yahoo’s Edgecast business unit in an all-stock transaction valued at approximately $300 million. Yahoo is receiving 72.2 million shares of Limelight common stock and will own approximately 31.9% of the combined company upon closing. Additionally, the merged company will be called Edgio.

Limelight Networks is a Content Delivery Network (CDN) service provider whose customers include entertainment brands such as Fox, BBC, Marvel and NTT Docomo. Edgecast provides CDN, serverless computing and streaming services.

Limelight said before the acquisition that it would rebrand the combined business as Edgio. The combined company boasts a global network capacity of more than 200 terabits per second (Tbps), with more than 300 global points of presence (PoP).

The two separate businesses generated approximately $502 million in combined revenue for 2021. Limelight plans to double its annual revenue, with increased gross margin, increased revenue growth and better revenue diversification going forward, it said. he said in a statement.

The combined companies sport a formidable list of customers, including Amazon, Coach, Disney, First Republic Bank, HBO Max, Hulu, Yahoo, British Telecom, Verizon, Microsoft, Peacock, Sony, TikTok and Twitter.

The new Edgio will be able to combine Edgecast’s multi-layered cloud security platform with Limelight’s web applications, it said in a statement.

“With global scale, a leading distributed edge platform, and an increased focus on security and connectivity, Edgio will be a solution provider of choice for businesses and results-driven customers looking to deliver a fast, secure and frictionless digital experience to end users,” the company said.

Edgecast was established in 2006, funded by an investment from Walt Disney Co.’s Steamboat Ventures. The company changed hands to Verizon in 2013. Verizon Digital Media Services was renamed Edgecast in 2021, following a majority acquisition by Apollo Global Management.

For Limelight CEO Bob Lyons, the Edgecast acquisition is about reaching a larger market.

“In six short months, we have taken our [Total Addressable Market] from $12 billion to $40 billion and with the acquisition of Edgecast, we are further accelerating and strengthening our ability to be recognized as a leader in advanced end-buyer software solutions,” said Lyons.

The company will continue to be led by Lyon as CEO, with its board growing from six to nine seats.

Build the edge

This is the latest fundamental news for edge computing at a time when it seems like everyone in telecommunications is talking or making some sort of strategic move to the edge, to build the edge or to monetize the edge.

At least some edge mania straddles the Metaverse, as evidenced by news of Verizon and Meta collaborating to ensure Verizon’s 5G network edge supports Meta’s core Metaverse technology. Verizon said it was working with Meta to ensure its network could provide the low-latency, high-bandwidth services needed to make the Metaverse a reality.

Nokia’s Adaptive Cloud Networking, meanwhile, is a new solution for CSPs that need to distribute computing power and data storage as much as they can. Nokia anticipates continued construction from the edge to on-site installations and bare metal.