Verizon to acquire CDN Edgecast to enhance media services
Verizon will acquire Edgecast, one of the few outwardly profitable content delivery networks for an estimated $350 million.
Edgecast is slated to join previously acquired Uplynk in boosting Verizon’s ability to offer “quality high-performance digital experiences” to customers. The company, founded in 2006, has developed a specialty in delivering high-quality video content, so it’s no surprise that Verizon snapped it up. “The combination of EdgeCast and Verizon Digital Media Services will allow us to fully exploit and accelerate growth in Internet media consumption and online business performance,” said Bob Toohey, president of Verizon Digital Media Services. “EdgeCast’s industry-leading technology and strategically placed assets, combined with Verizon Digital Media Services’ video solutions, improves our ability to deliver the rich, reliable and quality digital media services that our customers have come to expect.” The telco is clearly interested in directly marshaling the media that flows throughout its network, and it’s much more possible with this acquisition. This desire for control is the source of the ongoing clash between Verizon and the FCC over net neutrality, and it’s the edge of a slippery slope that could give Verizon the ability to express favorability towards certain sources while tamping down others. Whether Verizon will legally be able to do these things is still in the air, but it will certainly have the practical capabilities very soon.