Limelight Networks will acquire Edgecast from Yahoo and create a global platform providing video content delivery and network edge services. Limelight is rebranding as Edgio and the combined company will operate under that name.

Founded in 2001, Limelight is a leading online delivery platform based on a private global network. Customers include Amazon Prime Video.

Edgecast, founded in 2006, has a largely complementary customer base. It was acquired by Verizon in 2013 for $400 million and became part of Verizon Digital Media Services, which recently rebranded as Edgecast following the Apollo Global Management purchase of 90% stake of Verizon Media, which renamed to Yahoo! Inc.

Yahoo will receive shares in Limelight and will own approximately 31.9% of the combined company.

The deal values Edgecast at approximately $300 million, which is a little over its $285 million annual revenue. The two companies between them generated over half a billion dollars in revenue in 2021.

With a significant equity investment in the combined company from its existing ownership of Yahoo, Apollo will support the growth of the combined company with $30 million in cash.

“By uniting Limelight and Edgecast, we are building a powerful application, content and video edge enabled solutions company that delivers improved customer performance, productivity and security for the outcome buyer,” said Bob Lyons, the chief executive of Limelight.

Jim Lanzone, the chief executive of Yahoo, said: “By spinning off Edgecast to merge with Limelight, the new company will immediately become the leader in the massive and growing edge solutions market. I am confident in the value and strength of this combined company, and the growth it will drive for Yahoo, Edgio and Apollo.”