Content delivery network EdgeCast has raised $6 million in Series B financing, led by Disney-affiliated (DIS) Steamboat Ventures. The company will use the money to build out its infrastructure, grow internationally, and expand its sales and marketing teams. EdgeCast has now raised $10 million to take on industry heavyweights Akamai Technologies (AKAM) and Limelight Networks (LLNW), which have had to cut prices to keep up with cheaper players like EdgeCast, Level 3 (LVLT), etc. And the pricing pressure has spooked some investors. From 24/7 Wall St.:
Research firm Kaufman put “hold” ratings on content deliver networks Akamai (AKAM) and Limelight (LLNW) with price targets below where the stocks currently trade. … Companies can get into the CDN market for a few hundred thousand dollars. And, the market is flooded with capacity. … Until some of these smaller CDNs are bought out or fail out of the market, it is going to be hard for AKAM and LLNW to move up.
See Also: CDN Market Ripe For Consolidation
Disclosure: SAI chairman Kevin Ryan is CEO of (and an investor in) Panther Express, a NY-based CDN.
NOW WATCH: Tech Insider videos
Business Insider Emails & Alerts
Site highlights each day to your inbox.