& cplSiteName &

Verizon Scoops Up CDN Provider

Alan Breznick
12/9/2013
50%
50%

Racing to boost its competitive position in the emerging TV Everywhere market, Verizon Communications has struck again, making a deal to acquire another cloud-based video specialist.

Verizon Communications Inc. (NYSE: VZ) announced Monday that it will buy EdgeCast Networks Inc. , a privately owned content delivery network (CDN) provider. One of the fastest growing Internet firms, seven-year-old EdgeCast boasts more than 6,000 customers, including such large North American and European telcos as BT Group plc (NYSE: BT; London: BTA), Deutsche Telekom AG (NYSE: DT), and Telus Corp. (NYSE: TU; Toronto: T).

No terms of the deals were disclosed. But TechCrunch reported Sunday that Verizon will shell out more than $350 million for EdgeCast. Verizon said it expects to close the deal early next year.

The EdgeCast deal comes less than a month after Verizon scooped up uplink for an undisclosed sum. That three-year-old startup, which powers video streaming for the Watch ABC and Watch Disney TV Everywhere apps, focuses on streamlining the uploading and encoding of video streams for TV Everywhere services. (See Verizon Beefs Up TVE Unit.)

As with uplink, Verizon plans to integrate EdgeCast into its cloud-based video services unit, Verizon Digital Media Services . Specifically, the telco said Verizon DMS "will integrate EdgeCast's complementary capabilities to further improve and increase its ability to meet the exponential growth in online digital media content," as well as "broaden its portfolio of site acceleration services for digital enterprises."

EdgeCast, which has raised about $74 million in private funding since its 2006 launch, has made a name for itself in the fiercely contested CDN space despite competing against much bigger, more established companies. Its rivals include Akamai Technologies Inc. (Nasdaq: AKAM), Limelight Networks Inc. (Nasdaq: LLNW), Level 3 Communications Inc. (NYSE: LVLT), and Alcatel-Lucent (NYSE: ALU).

— Alan Breznick, Cable/Video Practice Leader, Light Reading

(9)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
albreznick
50%
50%
albreznick,
User Rank: Blogger
12/10/2013 | 9:26:36 PM
Re: Verizon
So do you think yet another acquisition may be needed for Verizon? Or do they now have what they need to do whatever they're going to do? The plot thickens.
kk-1
50%
50%
kk-1,
User Rank: Light Beer
12/10/2013 | 2:38:24 AM
Re: Verizon
$70M+ in financing means a post-money valuation of probably around $125M to $150M. Which means it's a 2X or so return for the VCs.

That begs the question - why did Edgecast sell for such a low multiple? Obviously, they wanted an exit and a better one didn't show up - which means they were likely not doing too well, and VDMS won't necessarily get lots of new business from this acquisition.
^ip4g^
50%
50%
^ip4g^,
User Rank: Lightning
12/10/2013 | 2:13:55 AM
Re: Verizon
.. the same way BitGravity is with Tata Communications. Do they get really forged, going forward ?
David Dines
50%
50%
David Dines,
User Rank: Blogger
12/9/2013 | 7:13:39 PM
Re: Verizon
Good question Alan, I would not try to guess what, if anything, is the end game for Verizon.  While they have been at this for a while, starting with Velocix, it is hard to know how much they dedicatd to making it happen. I would hypothesize that they tried to make it work first with a homegrown software, then they tried Velocix, then gave up and bought Edgecast.
albreznick
50%
50%
albreznick,
User Rank: Blogger
12/9/2013 | 6:49:26 PM
Re: Verizon
Very interesting indeed. I wonder what Verizon is up to here too. If they were serious about CDNs, why didn't they start earlier and go bigger? Or do they have something else up their sleeves?
David Dines
50%
50%
David Dines,
User Rank: Blogger
12/9/2013 | 3:44:20 PM
Re: Verizon
Very interesting development. I have noticed that the telcos in the past seem to consistently underestimate what it takes to make a global CDN network highly successful.  At least now Verizon will have a knowledgable sales and service staff. I have a wait and see attitude as to whether they will be able to increase market share - if the Terremark acquisition is any indicator, I would not expect great things out of this.
bosco_pcs
50%
50%
bosco_pcs,
User Rank: Light Sabre
12/9/2013 | 3:00:13 PM
Re: Verizon
Dan: 

if memory serves, folks like VZ and T would show their CDN ambition causing some discomfort to folks like AKAM and LVLT from time to time. Then the latter would respond saying they are more than just commoditized CDN providers

I have no clue abot EdgeCast but if VZ's hosting ACA is any guides, perhaps people should wait and see how the regular CDN gang turn out in the next few Qs before they draw any conclusions
wanlord
50%
50%
wanlord,
User Rank: Light Sabre
12/9/2013 | 1:32:31 PM
Re: Verizon
I think it took someone too long and too much money to realize it wasn't worth trying to build it in house...
DOShea
50%
50%
DOShea,
User Rank: Blogger
12/9/2013 | 12:27:25 PM
Verizon
Seems like Verizon is taking a much different direction than AT&T, which has been working closely with Akamai rather than trying to buy up CDNs.
From The Founder
NFV's promises of automation and virtualization are intriguing, but what really excites service providers is the massive amount of money they could save.
Flash Poll
Live Streaming Video
Charting the CSP's Future
Six different communications service providers join to debate their visions of the future CSP, following a landmark presentation from AT&T on its massive virtualization efforts and a look back on where the telecom industry has been and where it's going from two industry veterans.
LRTV Documentaries
Three Gets Smart(y), BT Invokes Twitter – The Recap

8|21|17   |     |   (0) comments


From Telecoms.com, a recap of the week's telecoms talking points. It's been a week of gimmicks as Three tests out a pay-as-you-go sub-brand called Smarty; Comcast
Women in Comms Introduction Videos
VMWare VP Brings Women Up With Her

8|16|17   |   6:49   |   (1) comment


It's an art and a science to make mentorship, inclusive leadership, diversity and promotion of high-potential women work, says Honore' LaBourdette, vice president of Global Market Development at VMWare.
LRTV Documentaries
5G Spectrum Wars – The Recap

8|15|17   |   2:22   |   (0) comments


Service provider 3 has filed a lawsuit against Ofcom over 5G spectrum auction in the UK.
LRTV Custom TV
Say What? Facebook Unleashes AI Anarchy – The Recap

8|7|17   |     |   (0) comments


A recap of the week's talking points on Light Reading's sister site, telecoms.com. Facebook AI programmers had a bit of a brain-fade as they allowed one of its AI applications to invent its ...
Women in Comms Introduction Videos
Fujitsu's Women Band Together to Help Girls Do STEM

8|2|17   |   9:35   |   (1) comment


Supporting women both inside and outside of Fujitsu is a top priority of the telecom vendor. Yanbing Li, Fujitsu Network Communication's director of System Software Development & Delivery, shares why it's important, but why there's still a long road ahead.
LRTV Custom TV
If You're Not First, You're Last – The Recap

7|31|17   |   08:18   |   (1) comment


In case you missed it, Amazon's 1% stock increase helped Jeff Bezos dethrone Bill Gates as the richest man in the world. Also, Taiwanese electronics manufacturer
Women in Comms Introduction Videos
AT&T's Tech President Preps Workforce for the Future

7|26|17   |   5:47   |   (10) comments


AT&T is focused on the software-defined network of the future and is reskilling its workforce to get ready too, according to AT&T's President of Technology Development Melissa Arnoldi.
Women in Comms Introduction Videos
Cisco: Mentoring Critical to Attract & Retain Women

7|19|17   |   6:40   |   (1) comment


Liz Centoni, senior vice president and general manager of Cisco's Computing System Product Group, shares why mentoring in all its forms is important for women and what Cisco is doing that's made a difference for women in tech.
LRTV Custom TV
Gigabit LTE With Snapdragon 835

7|12|17   |     |   (1) comment


At an event in Wembley stadium, EE used its live network to demonstrate gigabit LTE using a Sony Xperia XZ Premium smartphone with a Qualcomm Snapdragon 835 chip.
LRTV Custom TV
Implementing Machine Intelligence With Guavus

7|12|17   |     |   (0) comments


Guavus unites big data and machine intelligence, enabling many of the the largest service providers in the world to save money and drive measureable revenue. Learn how applying Machine Intelligence substantially reduces operational costs and in many cases can eliminate subscriber impact, meaning a better subscriber experience and higher NPS.
LRTV Custom TV
Unlocking Customer Experience Insights With Machine Intelligence

7|12|17   |     |   (0) comments


When used to analyze operational data and to drive operational decisions, machine intelligence reduces the number of tasks which require human intervention. Guavus invested in Machine Intelligence early. Learn about the difference between Machine Learning and Machine Intelligence.
Women in Comms Introduction Videos
Verizon VP Talks Network, Career Planning

7|12|17   |   4:49   |   (0) comments


Heidi Hemmer, vice president of Technology, Strategy & Planning at Verizon, shares how bold bets and the future of tech define her career.
Upcoming Live Events
September 28, 2017, Denver, CO
October 18, 2017, Colorado Convention Center - Denver, CO
November 1, 2017, The Royal Garden Hotel
November 1, 2017, The Montcalm Marble Arch
November 2, 2017, 8 Northumberland Avenue, London, UK
November 30, 2017, The Westin Times Square
All Upcoming Live Events
Infographics
With the mobile ecosystem becoming increasingly vulnerable to security threats, AdaptiveMobile has laid out some of the key considerations for the wireless community.
Hot Topics
Intel CEO Leaves Trump Biz Advisory Board
Dan Jones, Mobile Editor, 8/15/2017
Orchestration Startup UBiqube Pivots Away From NFV
Carol Wilson, Editor-at-large, 8/15/2017
T-Mobile Turns On First 600MHz 4G Sites
Dan Jones, Mobile Editor, 8/16/2017
WiCipedia: Dolly Babes, Manifesto Backlash & 'Brotastic' Failures
Eryn Leavens, Special Features & Copy Editor, 8/18/2017
Ericsson Plans 25,000 Job Cuts – Report
Ray Le Maistre, International Group Editor, 8/17/2017
Like Us on Facebook
Twitter Feed
Animals with Phones
We Know a Tough Day When We See One Click Here
Live Digital Audio

Understanding the full experience of women in technology requires starting at the collegiate level (or sooner) and studying the technologies women are involved with, company cultures they're part of and personal experiences of individuals.

During this WiC radio show, we will talk with Nicole Engelbert, the director of Research & Analysis for Ovum Technology and a 23-year telecom industry veteran, about her experiences and perspectives on women in tech. Engelbert covers infrastructure, applications and industries for Ovum, but she is also involved in the research firm's higher education team and has helped colleges and universities globally leverage technology as a strategy for improving recruitment, retention and graduation performance.

She will share her unique insight into the collegiate level, where women pursuing engineering and STEM-related degrees is dwindling. Engelbert will also reveal new, original Ovum research on the topics of artificial intelligence, the Internet of Things, security and augmented reality, as well as discuss what each of those technologies might mean for women in our field. As always, we'll also leave plenty of time to answer all your questions live on the air and chat board.