Report: Level 3, Limelight May Combine CDNs

Several weeks ago Dan Rayburn reported that changes were brewing at content delivery specialist Limelight Networks, which could include an acquisition. Dan provides an update today.

"While I've heard that both AT&T and Microsoft have passed at acquiring Limelight, the bigger news I have confirmed is that Level 3 and Limelight have been in discussions for a few weeks now about joining forces and combining their CDN assets as a joint venture," Dan writes. "If a deal between Limelight and Level 3 gets done, it's going to have a lot of impact on the content delivery market overall. Such a combined offering would also give telcos and carriers a run for their money and might also convince a few of them not to spend money to try and build out their own CDN. While it's too early to know all the ramifications of such a deal, it would drastically change the CDN landscape."

Read Dan's full account and analysis over at the Streaming Media blog.