Microsoft looks to buy Limelight Networks - Rumour

Mon Jan 14 2008, 08:52 AM UTC

Microsoft is interested in acquiring content delivery network, Limelight Networks, according to rumours on tech blog, Silicon Alley Insider. The site claims a CDN industry insider, unconnected with Limelight, as its source. However, other online sources claim the software giant is using Limelight, which it signed a partnership with in Aug 2007 to develop its own CDN system. No official statement has been made from either firm.

Deal Details

In Aug, a deal was signed between Microsoft and Limelight, which said the firms would cross-license certain technologies, consider joint development projects in the future and cooperate on extending and improving their respective technology infrastructures. At the time the firm also extended a multi-year agreement, which said Limelight would continue to provide global media streaming and content delivery services to Microsoft.

Limelight reportedly raised USD240m when it listed on Nasdaq in Jun 2007, and competes against rival CDN firms such as Akami and CDNetworks. It provides digital content delivery services for more than 850 of the world's top media companies, including Facebook, MSNBC.com and MySpace. Some commentators claim that a takeover bid would be a shrewd move if Microsoft intends to develop in this area, as Limelight's current market cap is set at just USD550m.

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