Content Delivery Network (CDN) company Edgio has filed for bankruptcy.
The company this week announced that it has voluntarily filed for Chapter 11 relief in the United States Bankruptcy Court for the District of Delaware to effectuate "one or more sale transactions" that should allow for the continued operation of the company’s business under new ownership.
“We are confident the flexibility gained through this process will enable the continued delivery of video streaming and web security solutions to our over 935 global customers who rely on us daily,” said Edgio CEO, Todd Hinders.
The company's primary lender, Lynrock Lake Master Fund LP, has made a stalking horse asset purchase agreement to acquire assets of the company through a credit bid in the amount of $110 million of the existing secured debt held by Lynrock.
Edgio has also secured $15.6 million in debtor-in-possession financing from Lynrock to keep the company operating during the sale process.
At the same time, Edgio said the company has engaged in discussions with a number of interested parties for a potential sale of all or part of the business and assets.
Edgio said it intends to use a Court-supervised sale process to seek the highest or best bid. A sale is expected within 80 days.
Edgio was formed in 2022 after Limelight Networks acquired Edgecast from Yahoo & Apollo Global Management, with the combined company rebranding that year.
Its network currently comprises 300 Points of Presence (PoPs) worldwide, more than 7,000 ISP interconnections, and more than 275Tbps of global capacity.
Limelight was founded in 2001, going public in 2006. The original EdgeCast Networks was founded in 2006, receiving funding from Disney's Steamboat Ventures before being acquired by Verizon in 2013.
Between 2013 and 2016, EdgeCast was a subsidiary of Verizon. Verizon acquired Yahoo! In 2017 and merged it with its Verizon Digital Media Services business (including the CDN service) to form Oath Inc. and later Verizon Media. Funds managed by Apollo Global Management Inc. acquired Verizon Media in early 2021 and brought back the EdgeCast and Yahoo names.
Content delivery networks (CDNs) emerged in the late 1990s, with players like Akamai and Cloudflare speeding up web page performance by caching content close to users.
More recently, Edge computing emerged as a way to achieve essentially the same thing, and CDN players have extended their offerings to do more than caching, and handling services closer to users.
Lumen and StackPath last year quit the CDN business, selling their enterprise customers to Akamai. Cloud provider Vultr recently launched a new CDN offering. Akamai, meanwhile, has been expanding its data center and Edge business.
