With the full acquisition of Yahoo Edgecast, Edgio promises the fastest web application on the planet running on its Global Edge network.
In March, Limelight Networks announced plans to acquire Yahoo Edgecast. The company has signed a final agreement to acquire Yahoo’s Edgecast business unit in an all-stock transaction worth about 300 million. The name of the new company will be ADGO, it was announced at that time. Limelight now ADGOAnd it said this week that it is hitting the $ 40 billion addressable Edge computing market, describing it as “the world’s best performing Edge platform with a complete set of capabilities for web applications, APIs and video content.”
Edgecast was Yahoo’s content distribution and streaming video platform, popular for its self-contained capabilities. Edgecast was created in 2006, funded by an investment from Walt Disney Co.’s Steamboat Ventures. The business changed hands in Verizon in 2013 Following a majority acquisition by Apollo Global Management, Verizon Digital Media Services was rebranded to Edgecast in 2021.
Operating as Edgio, the platform provides about 20% of the world’s Internet traffic, which, according to the company, serves as a content distribution network (CDN) for websites that require instant loading capacity from high-end streaming services to high-demand content. The business counts as entertainment customers, including Fox, BBC, Marvel and NTT DoCoMo. Edgecast / Edgio provides CDN, as well as serverless computing and streaming delivery services.
For Bob Lyons, CEO of Limelight (no ADGO) at the time of the announcement of the transaction in March, the acquisition of Edgecast was about to reach a wider market.
“In six short months, we’ve grown our total addressable market (TAM) from $ 12 billion to $ 40 billion, and with the acquisition of Edgecast, we’re accelerating and consolidating our ability to be recognized as a leader in Edge software solutions for results buyers.” Lyons says.
The ADGO said it would “rebuild the board of directors to better align with the needs of a growth-oriented, profitable and globally-scale technology company.” New to the board are Apollo and Diane Leddingham’s Reed Rayman and E-Faye Wang.
Yahoo acquired 80.8 million shares of Limelight Common stock, valued at about $ 300 million, based on VWAP, a 30-day retreat of about $ 4.12. The purchase price included a বিনিয়োগ 30 million cash investment in ADGO by Apollo and its co-investors. There is another $ 100 million on the line for Yahoo if Edgio meets the share-price target on the third anniversary of its completion. Edgio stockholders own about 66.8% of the combined company.
Shares of ADGO fell on Thursday after the announcement.