Roundup: Akamai Acquires Cotendo in CDN Deal

Data Center Knowledge (Dec 23 2011)

1. There are a lot of news angles on Akamai’s acquisition of Cotendo. The $268 million deal prompted a pop in Akamai’s share price, as it is widely viewed as bolstering Akamai’s competitiveness. Other elements: Cotendo’s relationship with AT&T, the role of the patent litigation between the two companies, and AKAM’s history of acquiring rivals. Here’s a roundup of notable coverage and commentary from around the web: Heard on the Street (Wall Street Journal): 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. (Read Full Article)

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