Limelight Sells Media Ad Unit for $66 Million

By Ashok Bindra August 30, 2011

Yahoo! News reports that content delivery network provider Limelight Networks, Inc., has sold its rich media advertising unit EyeWonder to DG Fastchannel Inc., the network operator that links advertisers with radio and television stations, for about $66 million in cash. As a result, its shares went up 8 percent in pre-market trading.

As per the report, the company now expects third-quarter revenue of $46.1-$47.3 million, which includes revenue from EyeWonder through August 31. Earlier the company predicted revenues of $51.7-$53.2 million. According to Thomson Reuters, on average, analysts were expecting revenue of $52.4 million, wrote Yahoo! News.

According to Yahoo! News, Limelight’s second quarter results were lower than expected because the company’s digital media revenues declined as its EyeWonder advertisement platform saw less campaign traffic. It was hurt due to delay in the launching of a new platform to secure more rich media campaign revenue from advertisers, wrote Yahoo! News.

The Yahoo! News report indicates that Limelight bought EyeWonder in 2009 to help its customers create interactive digital ad campaigns. Shares of the Tempe, Arizona-based company rose 20 cents in trading before the bell. It closed at $2.68 on Nasdaq on Monday.

In June, based on sources close to DG, Bloomberg reported that DG FastChannel was weighing a sale and working with Goldman Sachs Group Inc. (GS) to find buyers. The Irving, Texas-based company, which has a market value of about $755 million, may seek $1 billion, or about 10 times earnings before interest, taxes, depreciation and amortization. The company has started soliciting bids and most of the potential buyers are private-equity firms, reported Bloomberg.

Want to learn more about the latest in communications and technology? Then be sure to attend ITEXPO West 2011, taking place Sept. 13-15, 2011, in Austin, Texas. ITEXPO offers an educational program to help corporate decision makers select the right IP-based voice, video, fax and unified communications solutions to improve their operations. It's also where service providers learn how to profitably roll out the services their subscribers are clamoring for – and where resellers can learn about new growth opportunities. To register, click here.


Ashok Bindra is a veteran writer and editor with more than 25 years of editorial experience covering RF/wireless technologies, semiconductors and power electronics. To read more of his articles, please visit his columnist page.

Edited by Rich Steeves

TechZone360 Contributor

SHARE THIS ARTICLE
Related Articles

Pai Makes His Case for Title II Repeal

By: Paula Bernier    11/21/2017

FCC Chairman Ajit Pai today made clear his plans to repeal Title II net neutrality rules. The commission is expected to pass his proposal at its Dec. …

Read More

Mist Applies AI to Improve Wi-Fi

By: Paula Bernier    11/9/2017

Mist has created an AI-driven wireless platform that puts the user and his or mobile device at the heart of the wireless network. Combining machine le…

Read More

International Tech Innovation Growing, Says Consumer Technology Association

By: Doug Mohney    11/8/2017

The Consumer Technology Association (CTA) is best known for the world's largest trade event, but the organization's reach is growing far beyond the CE…

Read More

Broadcom Makes Unsolicited $130B Bid for Qualcomm

By: Paula Bernier    11/6/2017

In what could result in the biggest tech deal in history, semiconductor company Broadcom has made an offer to buy Qualcomm for a whopping $130 billion…

Read More

How Google's 'Moonshot' Could Benefit Industrial Markets

By: Kayla Matthews    10/30/2017

The term "moonshot" encapsulates the spirit of technological achievement: an accomplishment so ambitious, so improbable, that it's equivalent to sendi…

Read More