Limelight Networks to Buy Yahoo's Edgecast in Stock Deal

By Colin Kellaher

Limelight Networks Inc. on Monday said it agreed to buy Yahoo's Edgecast Inc. unit in an all-stock deal that values the provider of edge security, content delivery and video services at about $300 million.

Limelight said it will issue about 72.2 million shares to Yahoo, majority owned by private-equity firm Apollo Global Management Inc., resulting in Yahoo owning about 31.9% of the combined company at closing.

Apollo bought Yahoo last year for $5 billion from Verizon Communications Inc., with Verizon keeping a 10% stake.

Limelight, a Tempe, Ariz., provider of content delivery network services, said the deal will create an edge enabled software solutions provider with 2021 annual revenue topping $500 million.

Limelight said it plans to rebrand as Edgio, with the combined company operating under the new moniker upon closing of the deal, slated for the second half of the year.

Trading in Limelight shares, which closed Friday at $3.76, was halted premarket on Monday.

Write to Colin Kellaher at colin.kellaher@wsj.com

(END) Dow Jones Newswires

March 07, 2022 07:35 ET (12:35 GMT)

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