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Why Akamai Should Buy Limelight
June 19, 2008
Rumor: Akamai Tried To Buy Limelight During Trial (AKAM, LLNW) | www.alleyinsider.com
As recent quarter’s results show, Akamai’s core business is strong, traffic is growing and their largest revenue customers are secure. Limelight, on the other hand, isn’t executing as well as anticipated, has lost a patent lawsuit and finds itself squeezed between Akamai and smaller, low-cost competitors. Patent overhang and continued losses make Limelight unattractive to companies like Level3 or AT&T. Akamai would gain significant synergies by buying Limelight in ways that other CDN competitors could not.
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