Report: Verizon to buy content delivery network company Edgecast for over $350 million
Verizon is going to buy out content delivery network company Edgecast for over $350 million, according to TechCrunch. Verizon would likely combine EdgeCast with their own global network platform called COMMA. EdgeCast offers CDN services to companies like Twitter, Hulu, and Pinterest. The acquisition is expected to be officially announced in the next few days.
This is not Verizon’s only major acquisition in the last few weeks. Verizon acquired a digital media streaming company called UpLynk a few weeks ago for around $75 million.
In the past year, EdgeCast launched a couple of new services. The company launched a CDN offering for e-commerce companies in May. They also launched a DNS routing service in October.
EdgeCast was founded by the same team that started a company called KnowledgeBase, which was sold to CRM company Talisma Corporation. EdgeCast has over 6,000 clients and was near a $100 million run rate after raising $54 million from Performance Equity Management over the summer. EdgeCast is profitable.
EdgeCast raised a total of $74 million from investors like Mark Amin, Jon Feltheimer, Performance Equity Management, Menlo Ventures, and Steamboat Ventures.