Limelight Networks, once a major CDN player ranking in the top echelons of the CDN ecosystem, is hurting badly as of late. Five years ago it was the #2 CDN right behind Akamai, far ahead of the #3 CDN.
Limelight made a few bets and one of them didn’t pay off. They acquired EyeWonder in 2009 for $110M. They sold it off two years later for $66M. The financial loss was $44M. For a company the size of Limelight that generated $171M in 2011, it was disastrous.
In 2013, there was major turnover. The CEO was gone along with a few other executives. One great hire they made was Kirby Wadsworth, the Chief Marketing Officer. He is a marketing rock star having worked at F5. He helped catapult F5 into the major leagues where they now generate $1B+ in annual revenue.
These things happen in the tech industry. There are lots of great people working at Limelight. Many have gone on to work at other leading CDNs. The question now is what can Limelight do to re-invent itself and become a force to be reckoned with. I have few ideas I’ll share in another post.
Limelight Networks Background
- 511 employees
- 2012 Sales of $180M
- Net Income negative for last three years
- Last two quarters – $42M in sales each quarter
- 2013 Sales likely to be below 2013 sales
- Stock Price is $1.89 – it’s been in the $2 range for a while now