By Ben Fox Rubin
Verizon Communications Inc. (VZ) agreed to buy EdgeCast
Networks, an up-and-coming Internet startup, for an undisclosed
sum.
EdgeCast, a Southern California company, provides services that
help speed the delivery of content over the Internet, a market
largely pioneered by its much larger peer Akamai Technologies Inc.
(AKAM). EdgeCast has more than 6,000 accounts--including Pintrest,
Twitter and Hulu--and recently said it was profitable for several
years. In July, EdgeCast raised $54 million during a funding round,
using the money to hire more employees, help build its footprint
around the world and continue to boost the security and speed of
its network of data centers.
Verizon Digital Media Services, which provides video services to
businesses, will integrate EdgeCast technology to broaden its
portfolio of site acceleration services. The digital media business
provides content and site acceleration services to customers
including studios, broadcasters and retailers.
Earlier this year, Verizon Digital Media Services announced the
acquisition of upLynk assets, with technology that streamlines the
process of uploading and encoding video for live, linear and
video-on-demand content.
Verizon earlier this year inked the second-largest acquisition
in history, agreeing to purchase Vodafone Group PLC's (VOD, VODPF,
VOD.LN) 45% stake in Verizon Wireless for $130 billion, granting
Verizon full control of their joint venture.
Verizon shares closed Friday at $49.48 and were inactive
premarket. The stock is up 14% so far this year.
Write to Ben Fox Rubin at ben.rubin@wsj.com
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