Jun. 22, 2015, 12:32 PM
- A combo of Level 3 Communications (LVLT +1.1%) with Limelight Networks (LLNW +0.8%) would create a strong content-delivery rival to Akamai, figures Macquarie's Kevin Smithen.
- Verizon had passed on buying Limelight, choosing instead to go for EdgeCast 1.5 years ago to add 6K customers to its own content-delivery business. But Akamai could see real competition from a "credible second source" of a Level 3/Limelight combo.
- "We continue to believe that value will be created over the long term, either by organic margin expansion driven by 15% to 20% CDN industry revenue growth over the next few years, or by what we feel is a logical combination of Limelight with Level 3's CDN business," Smithen says.
Jun. 16, 2014, 10:04 AM
- P-E firm Tuition Build has offered to buy Limelight (LLNW) for $644.7M, or $6.55/share - a 131% premium to Friday's close.
- However, Limelight says it has "concluded that Tuition Build does not have the experience, credentials, financial resources, or capability to complete the proposed transaction," and that investors should "disregard" the offer.
- Limelight has been posting Y/Y revenue declines and losses amid softer demand from Netflix, which has been busy building its own CDN. Tuition Build's offer comes as Limelight rival Level 3 announces a $7.3B deal to buy TW Telecom.
Dec. 23, 2013, 4:46 PM
- Limelight (LLNW) has sold its website content management business (provides a cloud-based platform for managing Web/video content) to private Upland Software. Terms are undisclosed. (PR)
- Limelight has been posting losses and Y/Y revenue declines amid tough competition in its core CDN business from Akamai, Level 3, and others. The company ended $11M in net cash/investments, a figure equal to 58% of its current market cap.
May 28, 2013, 12:00 PM
Limelight (LLNW +6.3%) "is in talks to try and sell the company to Verizon (VZ) and is desperate to make a deal," Dan Rayburn reports hearing from "multiple attendees from Wall Street" at a conference he hosted. With Limelight burning cash and facing tough competition from Akamai (AKAM) and Level 3 (LVLT), there's logic to exploring a sale. Rayburn points out Limelight's management changes and Verizon's interest in growing its CDN business could lead to a deal. However, he adds Limelight has been seeing employee defections, and has heard Limelight customers criticize the "poor performance" of its CDN. Private XO Communications is also said to be talking with Limelight.| May 28, 2013, 12:00 PM | 2 Comments
Nov. 28, 2011, 9:46 AM
Akamai (AKAM +5.3%) is reportedly in talks to buy rival content delivery network Cotendo, which it's currently suing, for more than $300M. Dan Rayburn views Cotendo as a growing threat to Akamai, with customers claiming the Israeli startup's network is both faster and cheaper for certain high-margin applications. Publicly-traded rival Limelight (LLNW +6.6%) is also surging.| Nov. 28, 2011, 9:46 AM
Aug. 30, 2011, 8:01 AM
Limelight Networks (LLNW) soars 9.3% after announcing it will sell its EyeWonder online advertising unit to DG (DGIT) for $66M in cash - money the company can definitely use, given its rate of cash burn. Dan Rayburn had reported that Limelight was looking to sell EyeWonder, and perhaps merge its content delivery network (CDN) assets with Level 3's (LVLT) CDN business.| Aug. 30, 2011, 8:01 AM | 1 Comment
Aug. 16, 2011, 2:36 PM
Quick take on Limelight/Level 3: With Limelight bleeding cash, undercut by Level 3 on pricing, and incapable of generating the margins seen by market leader Akamai (AKAM) on value-added services, a merger with Level 3 is probably a smart move. Of course, the deal would only worsen Akamai's woes in the low-margin media delivery space.| Aug. 16, 2011, 2:36 PM | 2 Comments
Aug. 16, 2011, 2:35 PM
Online video analyst Dan Rayburn claims Limelight Networks (LLNW), which was recently hammered after reporting Q2 results, has been in talks about merging its content delivery network (CDN) business with Level 3's (LVLT) CDN operations, and simultaneously selling its EyeWonder online ad business. (previously)| Aug. 16, 2011, 2:35 PM