Verizon bolsters CDN stable with EdgeCast acquisition
Michelle Clancy | 10-12-2013
Verizon Digital Media Services is beefing up its in-house content delivery network (CDN) capabilities with the acquisition of EdgeCast for a reported $350 million.
Verizon has been using EdgeCast as an underlying CDN partner for some time. "The combination of EdgeCast and Verizon Digital Media Services will allow us to fully exploit and accelerate growth in Internet media consumption and online business performance," said Bob Toohey, president of Verizon Digital Media Services. "EdgeCast's industry-leading technology and strategically placed assets, combined with Verizon Digital Media Services' video solutions, improves our ability to deliver the rich, reliable and quality digital media services that our customers have come to expect."
This is the second acquisition for Verizon in the distribution arena recently: last month it said that it was acquiring upLynk - which handles the uploading and encoding of TV everywhere to multiple devices - for $75 million. That deal gives Verizon a bigger foothold in the over-the-top (OTT) business model and the ability to woo service providers looking to gain control over unmanaged digital distribution to find new monetisation options.
"Having journeyed from start-up to technology leader in a short seven years, the time is right for EdgeCast to elevate itself again by joining Verizon to continue our innovation and growth," said Alex Kazerani, EdgeCast chairman and CEO.
The Verizon and EdgeCast boards of directors have approved this acquisition and Verizon hopes to finalize it in early 2014. Verizon's financial adviser for this acquisition was LionTree Advisors LLC.
EdgeCast has more than 6,000 accounts and serves some of the world's leading Web brands for global media delivery and acceleration services.
The CDN market has 15%+ annual growth this year, according to ABI Research, and consolidation and acquisition will be rife, the firm has predicted.