The Phoenix Business Journal is reporting that on Friday, private equity company Tuition Build Inc. submitted a $645M bid to acquire CDN provider Limelight Networks (NASDAQ:LLNW) in an effort to take the company private. With Limelight’s stock closing at $2.83 a share on Friday, Tuition Build’s offer values each share of Limelight at just over $6.50, which is a nice premium considering that Limelight has yet to turn a profit over the past thirteen years.
With Goldman Sachs still holding about 30M shares the last time I checked, they have a lot of veto power in accepting or rejecting such an offer and historically, have rejected many acquisition offers by other CDNs. Over the years Limelight had more than half a dozen legitimate offers to sell the company, including two offers from Level 3, at least two from Akamai (NASDAQ:AKAM) and one from AT&T (NYSE:T), for more than $12 a share, that I am aware of. Hopefully Goldman doesn’t make the same mistake this time around and gets a deal done so Limelight can get help in growing their business and making it profitable.
Disclaimer: I have never bought, sold or traded a single share of stock in any public company ever.