Content delivery network (CDN) provider Limelight Networks is acquiring Edgecast, a leader in edge security, content delivery, and video services, from Yahoo in an all-stock transaction, the companies have announced. Edgecast, formerly Verizon Digital Media Services (VDMS), will merge with Limelight Networks to create a venture to be renamed Edgio — potentially, a globally scaled, edge-enabled software services provider across cloud security and web applications, content delivery, and edge video. The deal values Edgecast at approximately $300 million, a number roughly equal to its 2021 revenue.
Limelight Chief Executive Officer Bob Lyons sees the merger as an opportunity to expand its share of a roughly $40 billion total addressable market (TAM) with expanded combined capabilities and a great value proposition. With nearly $500 billion in assets under management (AUM), Apollo will support growth opportunities for Edgio as its specialties and experts converge and new possibilities emerge.
Edgecast and Limelight currently represent a wide customer base of leading tech companies and streaming services, including Amazon, Disney, HBO MAX, Microsoft, and other significant entities. Yahoo, in its current form, is owned by funds managed by Apollo Global Management and Verizon Communications.