Filed by Limelight Networks, Inc. Pursuant to Rule 425
Under the Securities Act of 1933
And Deemed Filed Pursuant to Rule 14a-12
Under the Securities Exchange Act of 1934
Subject Company: Limelight Networks, Inc.
Commission File Number: 333-164874
The following slides were presented by Jeffrey W. Lunsford, President, Chief Executive Officer and Chairman of Limelight Networks, Inc., on February 24, 2010 at the Goldman Sachs Technology & Internet Conference 2010 in San Francisco, California.
Additional Information and Where to Find It
Limelight Networks filed with the SEC a Registration Statement on Form S-4 (Commission File Number 333-164874) on February 11, 2010, as the same may be amended from time to time, containing a Proxy Statement/Prospectus in connection with the proposed transaction and plans to file with the SEC other documents regarding the proposed transaction. The definitive Proxy Statement/Prospectus will be mailed to the stockholders of Limelight Networks and the stockholders of EyeWonder in connection with the transaction. The Registration Statement and the Proxy Statement/Prospectus contain important information about Limelight Networks, EyeWonder, the transaction and related matters. Investors and security holders are urged to read the Registration Statement and the Proxy Statement/Prospectus carefully. Investors and security holders may obtain free copies of the Registration Statement and the Proxy Statement/Prospectus and other documents filed with the SEC by Limelight Networks through the web site maintained by the SEC at www.sec.gov and by contacting Limelight Networks Investor Relations at 917-297-4241. In addition, investors and security holders may obtain free copies of the documents filed with the SEC on Limelight Networks’ website at www.limelightnetworks.com.
Participants in the Acquisition of EyeWonder
Limelight Networks, EyeWonder and their respective directors, executive officers and certain other members of management and employees may be deemed to be participants in the solicitation of proxies in respect of the proposed transaction. Information regarding these persons who may, under the rules of the SEC, be considered participants in the solicitation of Limelight Networks stockholders in connection with the proposed transaction is set forth in the Proxy Statement/Prospectus described above. Additional information regarding Limelight Networks’ executive officers and directors is included in Limelight Networks’ definitive proxy statement, which was filed with the SEC on April 27, 2009. You can obtain free copies of these documents from Limelight Networks using the contact information above.
Investor Presentation
Jeff Lunsford, Chief Executive Officer
Copyright © 2010 Limelight Networks. All rights reserved.
Certain statements in this presentation relate to future results that are forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. This presentation contains statements involving risks and uncertainties, including statements relating to Limelight Network’s market opportunity and future business prospects. Actual results may differ materially and reported results should not be considered as an indication of future performance. Factors that could cause actual results to differ are included in Limelight Network’s Annual Report on Form 10K and Forms 10Q.
Our Vision
Transforming the digital experience to advance the way we live, work and play
Evolution of the CDN
First Evolution
“Brand New”
Second Evolution
“Always On”
Third Evolution
“Everyday”
As the Internet Has Evolved, the Standard for CDNs Has Evolved
Better Than Web … to … Looks Like Media …to… Flawless Performance
Scale Business
Massively equipped delivery centers
• 25 regional centers comprised of 70+ physical locations
• 9PB+ storage
• Logically close
Directly connected
• 900+ access networks:
• 85% of all traffic requests directly to access network
• Settlement-free interconnections
Private fiber-optic network
• 3.0Tbps egress capacity
• 3+ Nielsen ratings points of aggregate audience
• Dedicated 10 Gbps connections
• Global footprint
Technical advantages
• Control of entire delivery path
• Intelligent software layer
• Open APIs/platform
CDN Market Growth Projections
Total CDN Revenues, 2007-2011 ($000)
The Market Has Welcomed our Differentiated Solution
$140 $120 $100 $80 $60 $40 $20 $-
$129.5
$106
$65
$21 $11
2004 2005 2006 2007 2008
Consistent Traffic Growth – Gbps Sold
Q3 09
Q2 09
Q1 09
Q4 08
Q3 08
Q2 08
Q1 08
Q4 07
Q3 07
Q2 07
Q1 07
Q4 06
Q3 06
Q2 06
Q1 06
Q4 05
Q3 05
Q2 05
Q1 05
Enabling Global Online Businesses
Video and Entertainment
Digital Music and Social Media
Games and Rich Media Apps
Software Delivery
Enterprise and Government
Mobility and Monetization
LLNW Revenue Base
Customer Mix
2009 Q3 Revenue
Other 14%
Software
10% Video / Music 59%
Games 10%
Social Media 7%
Customer Concentration
2009 Q3 Revenue
Remaining Customers 39%
Top 1-20 50%
Top 21-40 11%
Today: 11% Share of the CDN market
20% Share of Large Object segment
9 yrs.
Large Object Delivery
Video · Music · Games · Software
Small Object Delivery
Whole Site · Small Images · Dynamic or Personalized Content · E-Commerce Transactions · Application Acceleration
Strategy: Grow equivalent share in Small Object space and launch Value-Added Services
Value-Added Services
20%+ share 3+ yrs.
Large Object Delivery
Video · Music · Games · Software
Small Object Delivery
Whole Site · Small Images · Dynamic or Personalized Content · E-Commerce Transactions · Application Acceleration
LimelightSITE – Small Object Delivery
Enterprise and Government Momentum
The Limelight XD Platform
XD Platform Momentum
“In our initial tests of
LimelightDELIVER XD, we saw high-performance, consistent delivery across a variety of content types and geographies. We’re excited about the positive impact this will have on page loads, site responsiveness, our customers’ buying experience, and the overall benefits that it will bring to our online business,”
Carter Lee, Vice President, Technology
Operations, Overstock.com
Mobility and Monetization Solutions
Dynamic Ad Insertion
• Mobile, iPhone, connected devices, podcast/downloads
• No change to advertising operations process –integration with DoubleClick or Microsoft Atlas
• Target by date range, demographics, geographic data, content topic and tags
Device-Optimized Delivery
• Delivers optimized video to iPhone, DROID, and other connected devices
• Carrier Independent
• Publish one URL everywhere, regardless of content format
• Supports dynamic advertising
Eyewonder
Interactive Digital Advertising. Advance
EyeWonder :: Overview
A decade of Interactive Digital Advertising innovation:
• Company founded in Atlanta in 1999
• Pioneered/developed an Instant Play Video Ad technology in 2000
• Now one of the world’s top rich media ad providers
• Clients include numerous Fortune 500 advertisers
• 1,000+ agencies use EyeWonder’s platforms, products and services for their clients’ interactive ad campaigns
• Closely aligned with online publishing community
• Partners with Adobe, Microsoft Silverlight
Top Advertisers, Agencies & Publishers
EyeWonder’s Digital Ad Offerings
Supports today’s most innovative and popular
Interactive Digital Ad (IDA) formats Create once, play anywhere
Allows agencies to extend buys and creative executions across digital media outlets
In Page Rich Media
In Page Video
Instream Video Ads
Mobile/Wireless Ads
IPTV
In Game Placement
Supports Rich Media Channels
In-Page Rich Media
In-Stream
Mobile
Custom Publisher
Award-Winning Ad Campaigns
2008 MIXX Awards, Best in Show
2009 OMMA Award for Online Advertising Creativity, Banner: Standard, Flash or Rich Media
2007 OMMA Award (plus
2008 ad:tech Award, 2008
AMY Award, 2008 Addy
Award, 2008 IAC Award,
2008 AiMA Award)
EyeWonder’s Global Market Coverage
US: Atlanta (HQ), Chicago, Dallas, New York, Los Angeles, San Francisco EMEA: Dublin, Milan, Paris, Hamburg, Koln, Dusseldorf, Munich, St. Petersburg, Stockholm, Amsterdam, London, Madrid
APAC: Sydney
Limelight Target Model
Year Quarter
Ended Ended
Dec. 31, 2008 Sept 30, 2009
Revenue ($MM) $129.5 $32.5
Gross Margin 37% 38%
Cash Gross Margin 57% 56%
S&M 23% 21%
R&D 4% 4%
G&A (w/o litigation) 18% 13%
Op. Margin -8% 0%
Adj. EBITDA Margin 12% 18%
Target Model
$300.0
45 +% 20% 6% 9% 10+%
25-30%
NOTE: Costs are represented without stock-based compensation and without litigation expenses
Path To Target Model
Leverage in G&A, Sales & Marketing Enter higher margin market segments Build/partner/launch value-added services in adjacent service areas
Payment for services already providing Expand customer base to “fill more valleys” Run network at higher level of utilization
Barriers to Entry
Connectivity
Customers
Time
Talent
Global Network Backbone
Proprietary Software/IP
Complexity
Capital
Attractive peering partner
Superior network performance
Network Effect
Scale –massive traffic volume
Deliver brilliance.