Shares of network services company Digital Island (Nasdaq: ISLD) continued their strong run on Friday, gaining 9-5/16 to 67-1/2. Investors are excited about Digital Island stock largely because of Akamai’s IPO success. This is due to the fact that Digital Island has made a deal to acquire Akamai competitor Sandpiper Networks.
Shares of Digital Island have nearly tripled since the deal was announced on Monday as investors anticipated a strong debut from Akamai that could boost the valuation of its competitors. Digital Island stock climbed 15-5/8 to 38-5/8 after the deal was announced on Monday, and they obviously haven’t cooled off yet.
This might be one of the most dramatic examples of how wealth can grow in Web time, although there are admittedly too many examples to count. On Monday, Digital Island was a hundred-million-dollar company that had made a deal to buy another hundred-million-dollar company. By Friday, Digital Island was a $2.35 billion company that had made a deal to buy a company worth nearly $2 billion.