Inktomi Corp. (Nasdaq: INKT) fell 2 1/4 to 108 3/4 Wednesday after the software maker said it will buy FastForward Networks for about $1.3 billion in stock. FastForward makes technology used to distribute and manage live broadcasts over the Internet.
According to Inktomi, the market for Internet broadcasting will reach $40 billion by 2003.
“Today’s acquisition further extends Inktomi’s position as being essential to the fabric of the Internet,” said President and Chief Executive Officer David Peterschmidt.
Inktomi said it will exchange about 11.9 million shares for all of the outstanding shares, options and warrants of FastForward. The companies expect to complete the transaction by year-end.
Inktomi, based in Foster City, California, develops and markets Internet infrastructure software.