Quite big news from Asia’s web world today: Japanese telecommunications giant KDDI (US$40 billion revenue) announced [JP] it will buy an 85.5% stake in CDNetworks, the Korea-based content delivery network, for US$167 million.
KDDI says the plan is to turn the CDNetworks HQ in Seoul into a subsidiary and to expand its global business (CDNetworks also has offices in the US, China, Europe, and KDDI’s home market of Japan).
CDNetworks’ core product offering is a Web Performance Suite that accelerates web content delivery and application performance for customers. The company currently offers over 130 content storage points at servers located in a total of 70 cities in 31 countries. With the acquisition, KDDI wants to be ready for the projected mobile data traffic explosion over the next years (KDDI itself has over 30 million mobile subscribers in Japan).
CDNetworks was founded in Seoul in 2000, is listed at the Korean Stock Exchange and currently boasts over 1,200 customers worldwide (including LinkedIn, Yelp, or German social network StudiVZ). The company hit US$99 million in revenue last fiscal and claims sales have been growing 20% a year on average since 2007.
Tokyo-based KDDI Corporation is a Japanese telecommunications operator. It was created in 2000 through a merger of DDI, KDD and IDO and now employs over 15,000 people. The company provides a broad range of services, including fixed-line phone communication, mobile phone and web services, and Internet services. KDDI’s mobile phone and web arm is branded as “au”. The company is the current No. 2 in Japan’s mobile communications market, trailing NTT docomo and ahead of SoftBank.
CDNetworks is a high performing global content delivery network (CDN), providing unparalleled speed and reliability of website content and application delivery anywhere in the world. CDNetworks’ focus on cloud-based network performance and superior customer support set it apart from other CDNs. More than 1,100 companies across industries, including gaming, high tech, manufacturing, media, retail and software rely on CDNetworks to reach their website users while minimizing content and application delivery costs. With more than 100 points of presence across...