Posted by : Randy Cooper in (CDN)

CDN Consolidation Poised to Begin

Consolidation in the content delivery space could be imminent, according to attendees at Streaming Media West last week. Given the more than 40 or so companies in the content delivery business, it seems inevitable that market consolidation would be on its way. But attendees at say merger and acquisition activity may begin sooner rather than later. There was clear talk of term sheets being passed about, which led one CDN exec at the show to quip, “Half the companies here are shopping themselves.” Another said that strategic talks between attendees dramatically could change the face of the conference in the next 12 months. “The big question, if you look around the room, is how many of these companies will be here next year,” he said.

While there’s no shortage of M&A rumors, what’s less clear is which companies are looking to buy, and what value they see in acquiring the competition. Some companies, like Mirror Image Internet Inc. , were very open about being in acquisition mode. According to Jim Hart, vice president of sales and marketing, Mirror Image is looking at several possible acquisitions, which could include adding new value-added services or adding assets in strategic markets, like Asia Pacific. Others say they’d prefer to remain on the sidelines while the market shakes out. Mark Hayes, vice president of business development for Highwinds Network Group Inc. , says he expects the majority of companies that are for sale to end up being sold in fire sales or asset sales. “We’ll wait for deals to fall into that bracket.”

Source: http://www.contentinople.com/author.asp?section_id=450&doc_id=164801

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