Content Delivery Network (CDN) company Akamai has completed the acquisition of select assets from its bankrupt rival Edgio.
Officially finalized on December 13, Akamai has acquired "certain customer contracts" from Edgio's businesses in content delivery and security, as well as "non-exclusive license rights to patents in Edgio's portfolio."
Edgio filed for Chapter 11 bankruptcy in September, and on November 26th the US Bankruptcy Court for the District of Delaware approved Akamai's bid for some of Edgio's assets. According to Frost & Sullivan analyst Dan Rayburn, the bid was valued at $125 million.
At the time of approval by the courts, Akamai said it expects Edgio's "several hundred" contracts to add $9-11 million in Q4 2024 and $80-100 million in revenue across 2025.
The acquisition does not include Edgio personnel, technology, or assets related to its network.
Edgio was formed in 2022 after Limelight Networks acquired Edgecast from Yahoo and Apollo Global Management, with the combined company rebranding that year.
Limelight was founded in 2001, going public in 2006. The original EdgeCast Networks was founded in 2006, receiving funding from Disney's Steamboat Ventures before being acquired by Verizon in 2013.
Between 2013 and 2016, EdgeCast was a subsidiary of Verizon. Verizon acquired Yahoo in 2017 and merged it with its Verizon Digital Media Services business (including the CDN service) to form Oath Inc. and later Verizon Media. Funds managed by Apollo Global Management Inc. acquired Verizon Media in early 2021 and brought back the EdgeCast and Yahoo names.
Akamai, which has expanded into data center and Edge computing in recent years, has been hoovering up CDN assets and customers as others exit the business. Lumen and StackPath last year quit the CDN business, selling their enterprise customers to Akamai.
