Yahoo’s Buying Spree Continues; PeerCDN Latest Target

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Google Inc. (NASDAQ:GOOG)’s not the only tech giant snapping up Internet-related startups right and left – one-time rival Yahoo! Inc. (NASDAQ:YHOO) is also starting to get some serious skin in the acquisitions game. On top of a slew of other acquisitions this year including Tumblr, Yahoo announced earlier today they were buying the content delivery start-up PeerCDN.

Yahoo statement

Yahoo! Inc. (NASDAQ:YHOO) confirmed the purchase in a statement to CNET, elaborating that three of PeerCDN’s engineers have already joined Yahoo’s “media organization.” The statement continued, “The team has a solid background in domain expertise and a passion for video that makes them a perfect fit for Yahoo.”

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Content delivery networks

Content delivery networks like PeerCDN are companies that own servers and other IT resources to enable delivering various forms of content, especially streaming video, with fast response times and lower bandwidth costs. CDNs are based on content replication, where multiple copies of content are placed on strategically dispersed servers. Larger CDNs can comprise thousands of servers in various locations across the globe.

The PeerCDN model added the wrinkle of linking users via a peer-to-peer network to smooth out network resources and minimize wait times.

Yahoo’s buying spree

Yahoo! Inc. (NASDAQ:YHOO) has acquired more than half a dozen companies this year. Most of them have been adding to Yahoo’s consumer and entertainment portfolio, but not this particular purchase.

CNET’s Richard Nieva puts in his two cents worth on Yahoo! Inc. (NASDAQ:YHOO)’s purchase of PeerCDN: “The acquisition is a little different than many of the other Yahoo buyouts that have been announced in recent weeks. While many of those were very consumer facing, like online video companies Evntlive and Ptch, this one is a more technical grab. It does, however, fit in thematically with the company’s focus on content.”