Verizon Acquires EdgeCast Networks

Yesterday, Verizon Communications Inc. announced an agreement to acquire the Los Angeles-based Content Delivery Network (CDN) company, EdgeCast Networks for over $350 million.

EdgeCast Networks, a provider of networking solutions along with web services and content delivery has been one of the fastest growing technology companies since its inception in 2006. The company specializes in on-demand delivery of data and rich media content and has about 6,000 clients that include Fortune 500 companies. The company is also strategically partnered with Google Inc. (GOOG), Microsoft Inc. (MSFT) and Yahoo Inc. (YHOO).

EdgeCast, which has been profitable over the last four years is largely considered an upstart and was initially funded by the venture arm of Disney. The company, with a current run rate of $100 million has raised $74 million in funding since 2006.

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Still Bullish on Verizon

Verizon Communications Inc. (VZ), the New York-based telecommunications giant, announced earnings for its third quarter of fiscal year 2013 (3QFY13) on October 17. The company is doing well and beat analyst estimates for both revenues and earnings per share (EPS) for the quarter.

Verizon’s per share earnings of $0.78 beat estimates by $0.03, and grew 16% YoY. In comparison, Verizon’s most significant competitor – AT&T Inc. (T) – posted slower growth of 14.28%.

Verizon’s total operating revenues grew to $30.28 billion, up 4.4% compared to 3QFY12. Net income from Verizon Wireless totaled $2.23 billion, but is expected to increase going forward as Verizon completes its repurchase of a 45% stake in Verizon Wireless held by the Vodafone Group Plc (VOD). Read more.

Mobile Payments: Plastic is so Passé

Mobile payment volumes are witnessing immense growth and are eventually expected to become more popular than conventional payment methods like credit and debit cards.

Mobile payments refer to payment services that are made through mobile devices. This may become the next disruptive technology, based on the growth in the number of mobile wallet apps globally and the adoption of mobile payment methods by large businesses like Starbucks Corporation (SBUX) which has been an early adopter of this technology. VZ.