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Limelight is purchasing Yahoo’s Edgecast CDN service

Limelight will rebrand the merger as EDGIO

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Limelight and Edgecast

Limelight Networks, Inc. this week announced that it has entered into a formal agreement to purchase Edgecast, Inc. from Yahoo and Apollo Global Management in an all-stock deal, valuing Edgecast at about $300 million.

The merger, which is said to complete in the second half of 2022, will make the merged firms continue to operate under the acquirer’s rebranded name Edgio. The merged firms will establish a software solutions provider with pro forma 2021 revenues of more than $500 million spanning cloud security and web apps, content distribution, and an edge video platform.

“By combining Limelight and Edgecast, we are creating a powerful application, content, and video edge enabled solutions firm that offers increased customer performance, efficiency, and security to the ultimate buyer,” said Bob Lyons, CEO of Limelight. He added, “Together we have a strong value proposition to serve the fast-growing, yet fragmented edge solutions market and our combined capabilities will accelerate our ability to capture more share of this high growth $40 billion total TAM (Total Addressable Market).

Edgecast, a Yahoo business unit, is owned by affiliates Apollo and Verizon’s managed funds. Following the smooth closing adjustments, Yahoo will receive a total of 72.2 million shares of Limelight’s common stock. In addition, upon the completion of the transaction, it will own 31.9 per cent of the merged firm.

Yahoo CEO Jim Lanzone, said, “By spinning off Edgecast to join with Limelight, the new firm will instantly become the leader in the large and expanding edge solutions industry.”

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