Dan Rayburn | Wednesday October 12, 2011 | 03:42 PM
| Comments (3)
Asian telcom provider KDDI has announced it will spend $167M to buy an 85.5% stake in content delivery company CDNetworks. The company said it will use the acquisition to strengthen its online content distribution services in Asia. CDNetworks did about $99M in revenue last year and said that revenue has grown 20% a year since 2007. CDNetworks had been looking for a buyer for over a year, so the deal really doesn't come as much of a surprise and it makes sense that a company based in Asia would be the likely buyer. Last year, CDNetworks changed the focus of their company from delivering video and CDN services to focusing mostly on web acceleration solutions.
Dan,
There is that 2x sales multiple we spoke about re:Limelight. Curious Dan, how would you compare the competitive position CDNetworks vs. Limelight? Side by side qualitatively and/or quantitatively which business do you think is better positioned in terms of business outlook and business risk?
Thanks,
SI
Posted by: schmuckinsurance | Thursday, October 13, 2011 at 12:04 AM
any thoughts here Dan?
Posted by: schmuckinsurance | Thursday, October 20, 2011 at 05:28 PM
cdnetworks is finished. the whole team is out, ceo sold his shares with only a minor stake left.
the japanese are going to take cdnetworks down further, not intentionally though. their whole strategy is to slaughter out the caching technology and reduce their domestic backhaul cost. they have no interest in growing it further and have no understanding how to run such a company anyway. so kddi was the last option the ceo and the investors had to make at least some bucks.
cdnetworks got completely screwed by those dubious dodgy guys like steve chung, robert gribnau, etc. cdnetworks has never been a relevant player outside asia or even korea. i wouldn't be surprised if their us business get shut down within the next 6 months
Posted by: morten | Tuesday, November 15, 2011 at 10:51 PM