Rumor: Google is Going to Buy Akamai

Oct 12, 2011
J. Webster
Comments Off on Rumor: Google is Going to Buy Akamai

Akamai’s stock is up 10% after hours as The Business Insider said Google plans to buy the web traffic controlling company. Akamai, which ‘provides services for accelerating and improving the delivery of content and applications over the Internet’, would be a good fit for a company like Google.

Right now, Akamai has a market capitalization of $4.3 billion, as the stock is well off it’s highs of $40 per share just six months ago, when it had a market cap of over $8 billion. With the stock depressed, seems like now is the time to buy the company. Plus, Google has plenty of cash to spare, even with their $12.5 billion purchase of Motorola Mobility. Still, this buyout is all just rumor for now.

At this point, it’s mostly just a rumor, but almost a dozen sources inside and outside of Google are telling us that they’ve at least heard about a looming Google-Akamai deal.

Then again, Akamai is one of those companies that’s always mentioned as a take over target.

Also: a high-level source at Akamai that we talked to shot down Google speculation.

Still, all of our sources think Akamai would be a good fit for Google.

Source: Business Insider

Update: Well, that was fast, Bloomberg just said Google is not planning an acquisition of Akamai.

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