Akamai’s Deal Streams Value for Investors
You don’t see deals this successful very often. Akamai is buying smaller rival Cotendo for just $268 million, about six times next year’s revenue estimates industry expert Dan Rayburn. Yet Akamai’s market cap jumped as much as $1 billion today on the news. Wall Street is psyched because Akamai’s business has been under assault and this is a quick and simple way to fight back.
Akamai does two things, which are really just variations of the same thing: speeding the delivery of content over the web with its worldwide network of servers.