Verizon has been trying hard to gain a solid foothold in the content delivery business. To that end, the carrier may soon acquire the notable content delivery network, Edgecast, in a rumored deal raking in more than $350 million.
Although it is still unconfirmed, TechCrunch cites a reliable source when reporting about this alleged deal. From an analytical view, it makes perfect sense for Verizon to sign such a deal. If the wireless carrier is serious in furthering its presence in the content delivery arena, EdgeCast can be a key stepping stone.
EdgeCast currently delivers CDN services to some of the biggest names in the online arena, including the likes of Hulu, Pinterest and Twitter. The company has been around for less than a decade and is already competing with other content delivery giants such as Akamai and Limelight.
Currently, EdgeCast has more than 6,000 clients and has been profitable year after year. All these aspects make EdgeCast an ideal acquisition for a carrier with big money. If the reports of the acquisition deal by Verizon are true, and if such a deal indeed rakes in more than $350 million, this would mean a massive payout for EdgeCast investors.
To date, the company has raised a total of $74 million which means that all those who have pooled in this investment will be getting a substantial sum as a result of Verizon acquisition. In all probability, Verizon will keep all operations of EdgeCast intact and add it to the content delivery portfolio it has been trying to construct.
Source: TechCrunch
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