As the name suggests, edge solutions are the company’s new focus

Limelight Networks announced Monday that it has entered into a definitive agreement to acquire Yahoo’s Edgecast business unit in a wholly-owned equity transaction valued at approximately $300 million. Yahoo will receive 72.2 million Limelight common stock and will own approximately 31.9% of the combined company at closing. The combined company will also be called Eggio.

Limelight Networks is a content delivery network (CDN) service provider that counts entertainment brands like Fox, BBC, Marvel and NTT Docomo as customers. Edgecast offers CDN, serverless computing, and streaming delivery services.

Limelight said ahead of the acquisition that it will rename the combined company to Eggio. The combined company has a global network capacity of more than 200 terabits per second (Tbps), with more than 300 global points of presence (PoP).

The two separate companies generated combined revenues of approximately $502 million for 2021. Limelight expects to double its annual revenue in the future, with increased gross margin, higher revenue growth and better revenue diversification, it said in a statement.

The combined companies have a formidable customer base, including Amazon, Coach, Disney, First Republic Bank, HBO Max, Hulu, Yahoo, British Telecom, Verizon, Microsoft, Peacock, Sony, TikTok and Twitter.

The new Eggio 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 a greater focus on security and connectivity, Eggio will be a leading solution provider for results-driven businesses and customers seeking a fast, secure and hassle-free digital experience to end users,” the company said.

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

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

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

The company will continue to be led by Lyons as CEO, with the Board of Directors expanding from six to nine seats.

Building the edge

It’s the latest foundational news for edge computing at a time when it seems like everyone in telco is talking about either making some sort of strategic move to the edge, building the edge or monetizing the edge.

At least some edge mania overlaps with the metaverse, as evidenced by the news of Verizon and Meta teaming up to ensure Verizon’s 5G network edge supports Meta’s foundational metaverse technology. Verizon said it is working with Meta to ensure its network can 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 who need to distribute the computing and data storage power as much as possible. Nokia anticipates the further expansion of the edge to on-premises installations and bare metal.

This post Limelight takes over Yahoo’s EdgeCast and becomes Eggio

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