"While I've heard that both AT&T and Microsoft have passed at acquiring Limelight, the bigger news I have confirmed is that Level 3 and Limelight have been in discussions for a few weeks now about joining forces and combining their CDN assets as a joint venture," Dan writes. "If a deal between Limelight and Level 3 gets done, it's going to have a lot of impact on the content delivery market overall. Such a combined offering would also give telcos and carriers a run for their money and might also convince a few of them not to spend money to try and build out their own CDN. While it's too early to know all the ramifications of such a deal, it would drastically change the CDN landscape."
Read Dan's full account and analysis over at the Streaming Media blog.