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Summary:

Updated: Akamai has just announced that it is buying Red Swoosh, a peer-to-peer based service for about $15 18.7 million in stock. That’s not that much for a start-up that counts some heavy weights as its customers. The rumors of this deal had been floating around […]

Updated: Akamai has just announced that it is buying Red Swoosh, a peer-to-peer based service for about $15 18.7 million in stock. That’s not that much for a start-up that counts some heavy weights as its customers.

The rumors of this deal had been floating around for about two months and Travis Kalanick of Red Swoosh has been avoiding us for a while now, ever since we asked him about the deal. Anyway the deal should make Akamai naysayers pause a little. Many had said that P2P caching could dislodge Akamai from its current dominant position. Fat chance – Akamai, it is clear, is more fierce in protecting its turf than say Microsoft. It just uses its hefty stock market capitalization to buy out possible competitors.

I would post a longer post later today once I get through the email-hell!

  1. Congrats Travis and Team!!!

    This is yet another validation that P2P and high quality downloads have become a must-have component of any commercial online video initiative.

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  2. [...] Akamai got one helluva deal on this one. I don’t think congrats are due Red Swoosh as much as Akamai and team. [...]

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  3. Congrats Travis. These guys have been at it for a long time. Good work should always be rewarded.

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  4. Is That Where RedSwoosh’s $15 Million Valuation Came From?…

    On June 27, 2001, CNet ran an article on Kontiki and Red Swoosh. Giga Information Group analyst Joel Yaffe panned the stealth-mode startups’ P2P plans: individual Internet-connected PCs are so unpredictable; they would put content publishers in a prec…

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  5. [...] has acquired Red Swoosh for $15 million in a stock for stock transaction. We covered Red Swoosh last year when they launched a free, ad [...]

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  6. This news tends to prove that even giants like Akamai with strong CDN networks cannot compete against p2p delivery networks. So if you cannot beat them, join (buy…) them !

    To another extent, this news is very good and confirm the efforts from my company to evangelize P2P and provide P2P Content Delivery solutions: peer-to-peer is now seriously considered as the main architecture when companies develop their online video distribution portal, while client-servers architecture are deprecated.

    And of course it is not limited to video contents: you can use p2p content delivery networks for music, pictures, work documents, zip archives, programs …

    Sebastien
    http://www.1-click.com

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  7. Newswatch 4.13.07: CEO of Yahoo target committed securities fraud…

    What do you think of this news feature? Useful? Superfluous? Let us know in the comments. Want to see more headlines? Fewer? Should we include a blurb? This morning’s news: Rivals.com CEO committed securities fraud: Yahoo deal killer? (TechCrunch) Net…

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  8. [...] Over the years, P2P has found many legitimate uses and has found a way into everyday life. Why… even Akamai, which had scoffed at P2P, decided to acquire Red Swoosh. [...]

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  9. The deal defintely is strategic and signifies two things

    1) P2P will play a significant role in CDNs to lower the costs for delivery high quality videos and streaming live events.

    2) The $15 Million price tag also says that P2P CDNs will not be mainstream anytime sooner, and hence low revenues for the next 2-3 years.

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  10. [...] has acquired Red Swoosh for $15 million in a stock for stock transaction. We covered Red Swoosh last year when they launched a free, ad [...]

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