Limelight Sells Media Ad Unit for $66 Million

By

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
Get stories like this delivered straight to your inbox. [Free eNews Subscription]

TechZone360 Contributor

SHARE THIS ARTICLE
Related Articles

How Is AI Bringing Intelligence to Traditionally Manual Inspection Workflows?

By: Contributing Writer    10/16/2026

For insurers, rental companies, fleet operators, and remarketing businesses, vehicle inspections are a part of everyday operations. Much of that proce…

Read More

3 Factors That Can Dramatically Impact Your Microsoft Intune Spend

By: Contributing Writer    10/13/2026

With remote and dispersed work here to stay for the long term, secure endpoint management has become a big headache for IT and cybersecurity teams. Th…

Read More

Why Threat Modeling Fails Without an Attacker's Perspective

By: Contributing Writer    10/13/2026

A security team might spend weeks mapping attack paths and planning defenses, only to be breached through a web application nobody remembered was stil…

Read More

From AI Experiment to Enterprise Strategy: Making Claude Work at Scale

By: Contributing Writer    10/12/2026

Artificial intelligence often enters an organization through experimentation. One employee discovers a useful prompt, another tests document analysis,…

Read More

SIEM needs exposure context to keep pace with AI-era threats

By: Contributing Writer    10/6/2026

Security information and event management (SIEM) platforms give security operations center (SOC) teams a central place to collect and analyze security…

Read More