Source: Verizon paying $390 million for EdgecastDecember 9, 2013: 12:46 PM ET
Verizon bulks up its content delivery business with Edgecast purchase.
No financial terms were disclosed, but Fortune has learned that the purchase price is around $390 million. This apparently includes some cash that Edgecast still hasn't spent from a $54 million funding round that closed this past summer.
Word is that Edgecast had been prepping for a 2015 IPO, and that it was profitable with around a $100 million revenue run rate. But Verizon swept in with an offer the company couldn't refuse. Not terribly surprising from a synergy standpoint – although Edgecast does have a small reseller business that may be difficult to maintain.
Very big win for Edgecast's VCs, who put in a total of $74 million (including the Series D). Namely Menlo Ventures (largest shareholder) and Steamboat Ventures (first institutional backer). It also will be a positive return for Performance Equity Management, which led the latest round.
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