Content Delivery Shakeout Continues: Velocix Sold To Alcatel-Lucent

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The content delivery network (CDN) market — dominated by Akamai (AKAM) and Limelight (LLNW), but recently flooded with a glut of upstarts — is starting to shake out.

The latest: Velocix, formerly CacheLogic, is being acquired by Alcatel-Lucent (ALU), a telecom equipment maker. CDN industry analyst Dan Rayburn pegs the deal around $20-25 million, or about the amount of venture capital the company had raised. Not an ideal exit.

Meanwhile:

  • Rayburn says another CDN called Vusion has sold its intellectual property and shut down.
  • In April, Seattle-based CDN Grid Networks merged with Global Media Services.
  • Earlier this year, NYC-based CDN Panther Express — which, full disclosure, shared investors and founders with The Business Insider — was sold to Korea-based CDNetworks at a low valuation.

We’ll learn more about the health of the CDN business from its leader tomorrow when Akamai reports Q2 results. Join us for live coverage.

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