Report: VeriSign Shopping P2P CDN Business

It looks like VeriSign’s strategic review of its content delivery network didn’t last long. Dan Rayburn writes that VeriSign (VRSN) is actively shopping its Kontiki peer-to-peer network to other CDNs and content companies. In mid-November the company said it would take up to six months to evaluate whether to divest its CDN business as part of a broader corporate restructuring.

Who might be a buyer? There’s chatter that Limelight Networks (LLNW) is taking a look, but Dan says that would likely need to be an all-stock deal, and VeriSign probably prefers cash (especially given the recent volatility in shares of Limelight). Rayburn also notes that many existing CDN providers have already developed strategies for integrating P2P delivery into their offerings.

Level 3 (LVLT) is another possibility, and company executives say they are actively monitoring opportunities in P2P delivery. But Level 3 is also dealing with shareholder discontent after integration problems with some of its earlier acquisitions, and another deal might test investors’ patience.

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About the Author

Rich Miller is the founder and editor at large of Data Center Knowledge, and has been reporting on the data center sector since 2000. He has tracked the growing impact of high-density computing on the power and cooling of data centers, and the resulting push for improved energy efficiency in these facilities.