CDNetworks Acquires Panther Express
CDNetworks has acquired Panther Express in a move that could signal; the start of a long-expected consolidation phase in the content delivery sector. The deal gives Korea-based CDNetworks a larger presence in the U.S., where Panther had a marquee client in the official BarackObama.com campaign site.
CDNetworks has been the leading content delivery network in Asia, and expanded into the U.S. market in mid-2007, establishing caching sites in nine locations. It raised $96 million in private funding in late 2007 and appeared poised to make an acquisition to expand its North American presence.
Panther was privately held and founded by DoubleClick founders Dwight Merriman and Kevin Ryan, who also founded the Silicon Alley Insider blog network. Terms of the deal were not disclosed.
The content delivery sector has seen an explosion of new providers over the last several years, with more than 30 companies now offering services and major telecoms now getting into the act as well. Many of these new players received backing from venture capital firms, but created a competitive environment that some CDN watchers predicted would prove unsustainable.