Goodwin Procter is advising Limelight Networks Inc. on its deal to acquire Edgecast Networks Inc., a content delivery and security service provider owned by Yahoo Inc.
Paul Weiss is advising Edgecast and Yahoo’s owner, Apollo Global Management Inc. The all-stock transaction, which values Edgecast at around $300 million, or about one times its 2021 revenue, is expected to close in the second half, according to a statement.
Limelight, a Scottsdale, Ariz.-based digital media delivery and cloud access services provider, will operate under the new name Edgio. Yahoo will appoint three directors in the combined business and get a 31.9% stake in it after investing $30 million.
By acquiring Edgecast, Limelight gets expertise on security and other technology needed to efficiently deliver media content and video streaming to subscribers, the statement said.
Verizon Communications Inc. retained a 10% share in Yahoo when it sold the internet pioneer as part of its $5 billion Verizon Media deal with Apollo last year.
To contact the correspondent on this story: Rick Mitchell in Paris at rmitchell@correspondent.bloomberglaw.com
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