Akamai Acquisition of Google Baseless – Sources

October 13 00:00 2011

New York, October 13 (RainbowNewsLine.com) – An inside source has revealed Wednesday that there is no substance in the report that Google (NASDAQ: GOOG) was planning to acquire Akamai Technologies (NASDAQ: AKAM). In after-hours trading Wednesday, shares of Akamai surged more than 11 percent at one point after the report of a deal was announced by technology blog Business Insider that cited “multiple ad tech sources” who were not identified.

However, a source that is familiar with the matter told Reuters that the report of the deal was without any basis. Representatives from Akamai and Google refused to comment on the rumors. When confirmation of the deal was not forthcoming, shares of Akamai which have been trading much lower than their 52-week high of $54.65, lost their after-hour gains later on Wednesday. They were trading up 2.9 percent at $24.04.

Takeover rumors of Akamai, whose service improves the performance of websites, have been doing the rounds for quite some time. Mark Kelleher, an analyst with Dougherty & Co. said that there were reports last week that Akamai could be acquired by Verizon Communications or International Business Machines Corp. He added that ever since he could remember there have been theories of who could come in and acquire Akamai.