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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It's a classic Wall Street game: Build a feeding frenzy to drive up a deal. And like most hype, it'll leave investors little to chew on in the end.
FORTUNE -- When you've gone hungry for a long time, even mediocre takeout dishes can look like something scrumptious from a five-star restaurant. That explains the stampede by buyers to gobble up Verizon's record $49 billion debt offering.
For years investors, especially big MOREAllan Sloan, senior editor-at-large - Sep 18, 2013 5:00 AM ET
Verizon launches largest corporate bond offering of all time.
FORTUNE -- Verizon Communications (VZ) today formally launched a $49 billion bond sale to help finance its $130 billion acquisition of Vodafone's 45% stake in Verizon Wireless. It would be the largest investment-grade corporate bond offering of all time, easily topping Apple's (AAPL) $17 billion issuance from this past spring:
Verizon's offering also could help turn around the entire corporate bond market's fortunes, MOREDan Primack - Sep 11, 2013 11:31 AM ET
Will Vodafone pay taxes in the U.K. for its wireless sale to Verizon or won't it? Bankers with $600 million on the line should rest easy.
By Cyrus Sanati
FORTUNE -- The massive $130 billion Verizon/Vodafone deal is a boon for Wall Street, reportedly netting some $600 million in fees for the legions of bankers, attorneys, and accountants who worked (and continue to work) tirelessly to make the deal a reality. But MORESep 4, 2013 10:01 AM ET
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