Published on 8 Mar 2022 on MarketWatch

Limelight to buy Yahoo's Edgecast in a stock deal valuing Edgecast at $300 million

Shares of Limelight Networks Inc. rallied 6.7% in premarket trading Monday, after the content delivery services provider announced a deal to buy Yahoo's Edgecast Inc., a provider of security, content delivery and video services, in a stock deal that values Edgecast at about $300 million. Yahoo, which owns Edgecast, is owned by Verizon Communications Inc. and funds managed by affiliates of Apollo Global Management Inc. Under terms of the deal, Yahoo will receive 72.2 million shares of Limelight and will own 31.9% of the combined company. "By uniting Limelight and Edgecast, we are building a powerful application, content and video edge enabled solutions company that delivers improved customer performance, productivity and security for the outcome buyer," said Limelight Chief Executive Bob Lyons. Limelight's stock has run up 37.2% over the past three months while the S&P 500 has slipped 7.6%.