Limelight and Level 3 Expected To Make Joint Announcement Soon
Over the past 24 hours, some Wall Street money managers have been calling me saying they are hearing that Level 3 and Limelight will soon make a joint announcement regarding both company's CDN business. I have been hearing the same thing and expect the news will come out shortly, maybe even tomorrow. Back in August I reported that Limelight was in discussions to work with Level 3 to potentially merge their CDNs businesses and work with one another to sell CDN and value add services. The companies have been speaking since the summer and while various options were looked at, it appears that both companies have now settled on a deal, which I originally heard was suppose to come out today. Maybe it will be after the market closes or will come out tomorrow, but an announcement is imminent and it will not be an acquisition, but rather some kind of partnership.
Since I don't know all of the exact details on how the deal will be structured, I'm not going to release only partial info on what I have heard and will let both companies share the full details themselves. But with the news expected to hit shortly and Limelight reporting earnings on Monday, I expect we'll hear a lot more about this very soon. I've already outlined how a deal like this could help both companies, but until a deal is officially announced and we know exactly what the structure of the deal looks like, it's still too early know how this will impact the CDN market in the near-term.