Wow, this news blows me away. When I posted about Brightcove needing to buy companies, to reach the milestone of $1B in annual revenue, I didn’t mean to spend $49M on an ad insertion company. This deal is so bad, in so many ways. The very first thing that pops out of my mind, is that the founder of Unicorn Media and Limelight Networks, has nice a little Biography on the Securities Exchange Commission website.
I’m not saying Unicorn doesn’t have great technology, incredible customer base, or killer team, I’m just saying Brightcove had all the leverage in the world, and could have gotten a way better deal, like paying $4.9M not $49M. Either that or walk.
What can $49M buy right now? How about Signiant + MaxCDN or Signiant+Cachefly. Boom, right out the door, you get Signiants customer base, which smokes Unicorn’s, plus you get a CDN, so instead of reselling CDN, you sell your own.
Enough, no more beating a dead horse. The deal is done. Now, the Unicorn team can help build Brightcove a low cost CDN, to lower their CDN cost, and develop a killer feature, that will generate a $1B in additional revenue, and make me look like the fool. Good luck Brightcove team.