"I find it interesting to see this post show up the night before Limelight's earnings, by someone who won't use their name and has never written any other articles on SeekingAlpha.com. Clearly a red flag. Also, Brightcove never competed with Limelight, they re-sold Limelight's CDN until Limelight decided to compete with Brightcove by acquiring Delve Networks, a cloud based online video platform, which was in the same market as Brightcove. So the author has that backwards. Brightcove is not a "value-add CDN" as Brigthcove's owns nothing network related and re-sells CDN services from other companies. Also, anyone who has seen who these letters are going to will notice they are mostly small hosting companies and regional networks, not major ISPs. So the letters they are sending out aren't going to a large percentage of their ISP and peering partners and it's not going to companies who push a lot of traffic. Limelight even says in the letter that those they sent it to "no longer meets their minimum requirements". These aren't large networks. All of this is out there to see if you simply look at the details or talk to some of the folks who have gotten the letters, which it does not sound like the author has done. The author says, "the CDN market is technologically highly specialized", but it's not when it comes to video and the kind of volume traffic Limelight is pushing. It's become so commoditized that Limelight and all CDNs are trying to diversify into services outside of CDN as quickly as possible. If CDN was that sticky and "specialized" then CDNs would still be focusing on non-value add services. Also, I think if anyone is going to suggest a company is going to go under, it's a good idea to report how much cash they have on hand, which this author doesn't." I also agree that this article just seems too suspicious on the day that LLNW is to report. Looks like someone want to buy some cheap shares. Someone should look into who is buying at these levels besides me!
Good Stuff! I missed that (author?) while reading the article I found "whacked"!
Commoditized? They can't be serious! 1. LLNW has superior scale and tech. 2. Why are companies seeking to buy CDN's? > 3. This is not a turn-key operation people its very expensive: See Goldman Sachs Underwriting. 4. Still CAPEX'in after what 8 years +/-
* Will Akaimai's CEO join LLNW's board? Where is he going? * Microsoft & Facetime- Friends of my Friend. = Game, set, match.
Sorry I forgot the link to the article on Seeking Alpha - so funny that there is no author to this suspicious story. Seems like a big Akamai supporter to me, or someone trying to gobble up some cheap shares. Talk about a conflict of interest!
I don't care who the company was in the article, it was the principle of how it was written and how it was posted. Someone has to let SeekingAlpha.com know that type of content isn't what makes a quality site when they allow that.