Thursday, March 01, 2007

L3's CDN Buy

Level(3) bought Savvis' CDN (content delivery network) for $135M to challenge Akamai and Limelight in the CDN space. Seeking Alpha has the history of the assets that L3 bought:
Digital Island and Sandpiper started as separate companies in the late 1990s. They merged in a $621M deal in October 1999. In May 2001, Cable and Wireless bought Digital Island for $340M. In January 2004,Savvis bought the U.S. assets of Cable and Wireless for $155M, which included the combined content delivery network of Digital Island and Sandpiper. In December 2006, Savvis sold their content delivery network to L3 for $135M.
Light Reading has an article on the future of the L3 CDN. BTW, L3 is sitting on $7B in debt - $4B of the debt now matures in 2010 and 2011. [Source] Here's a nice post about the value of breaking up L3.

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