Akamai, the content delivery network company, has acquired San Francisco video data distribution company RedSwoosh for $15 million — as it seeks to maintain leadership in the important video delivery industry.
See statement here.
We wrote about Redswoosh last year. It offers a free peer-to-peer content distribution product similar to BitTorrent, and shares ad revenue with content owners. You download its software in order to share files, and its advantage is that it respects copyright — something Redswoosh early investor Mark Cuban has been vocal about lately, criticizing YouTube’s inability to do such filtering for example.
The investment appears to have been profitable. Mark Cuban invested $1.5 million in 2005, and August Capital and Radical Investments were among a group that invested $1.7 million last year.
Over the past few years, Akamai has acquired several related companies, including Speedera Networks, Netli and Nine Systems.