More Limelight Buyout Rumors

Henry Blodget at Silicon Alley Insider seems convinced that someone should buy content delivery network Limelight Networks (LLNW), but the likely acquirer seems to be a moving target. After a series of posts predicting Limelight would be bought by Microsoft (MSFT), Blodget now speculates that Level 3 (LVLT) may be a bidder and that a deal "might happen sooner rather than later." Interestingly, Blodget acknowledges that his source "has no information here: s/he is just putting two-and-two together."

I've been skeptical about the reports that Microsoft would acquire Limelight, since the two companies are already partnering on Microsoft's expansion of its own CDN infrastructure. It has certainly occurred to industry watchers that Level 3, which wants to grow its CDN business, might covet Limelight. But recent events suggest Level 3 may be taking a break from additional acquisitions, as Dan Rayburn notes in the comments at Silicon Alley Insider:

Blodget outlines some rationales for a Level 3-Limelight deal, and then tees off on both companies:

Ouch! Why is Silicon Alley Insider so focused on a Limelight deal, and the content delivery sector? It's worth noting that Kevin Ryan, the chairman and co-founder of Silicon Alley Insider, is also the co-founder and chairman of CDN startup Panther Express. Ryan's dual roles are fully disclosed, which is a good thing, and perhaps provides context for SAI's keen interest in content delivery M&A.