Stock Watch: Akamai Climbs on AOL Deal

Shares of Akamai Technologies (Nasdaq: AKAM), which provides content-delivery services for online businesses, soared about nine percent on Wednesday, gaining 19-1/2 to 242 after the company announced an alliance with America Online (Nasdaq: AOL). Akamai’s servers will be deployed within the AOL network of properties to help deliver Web content to AOL members. Akamai will also make guaranteed payments to AOL.

Even though Akamai is paying AOL, investors seem to see the deal as additional evidence of Akamai’s dominance in the content-delivery space. Akamai services more than 225 Web properties, including more than 100 e-commerce businesses. Its customers include Yahoo!, NBC Internet, Lycos, VerticalNet and The New York Times, Martha Stewart Living Omnimedia and Microsoft’s streaming media division.

Leave a Comment

Please sign in to post or reply to a comment. New users create a free account.

TechNewsWorld Channels