VeriSign Sells Kontiki CDN Business For $1 Million And Stake In New Company
VeriSign just filed its 8-K detailing the sale of the Kontiki business to a new entity, Kontiki Inc., which is a majority-owned subsidiary of MK Capital. "VeriSign received compensation of $1 million and 3,980,000 shares of the Purchaser’s Series A Preferred Stock".
MK Capital is already closed for the day so I’m not able to ask them if they will say how many outstanding shares are in the new company and what percentage VeriSign owns. While the rumored price being talked about last month was $40 million, it’s really hard to know what the deal is valued at without knowing how many outstanding shares there are and what the new Kontiki is valued at.
As I predicted back in December, I always expected that VeriSign would exit the CDN business once they began to contemplate whether or not they wanted to stay in the market with the service. Come April, it was already clear that a deal would be done to take them private.
The kontiki.com domain now goes to a website with details on the Kontiki acquisition and includes a new Kontiki logo I have never seen before. Don’t know for sure if that will be their new logo and brand but I’m sure we’ll find out soon enough.
NewTeeVee.com has posted an interview from today with Eric Armstrong, Kontiki’s new president.