Akamai shares up on news of AT&T partnership
Stock in Akamai Technologies Inc. rose 10 percent Thursday following an announcement that the company plans to offer its routing services
for delivery of digital content, video and Web apps to business customers of AT&T Inc. through a multi-year, exclusive partnership.
A joint announcement between the Cambridge-based enterprise cloud software and services company and the Dallas-based communications company said the alliance will combine Akamai’s content delivery platform and services with AT&T’s internet protocol (IP) network to provide global services that would be managed and marketed by both companies. The companies plan to focus on North America for the first year, then expand to other continents.
AT&T will transfer its existing content delivery network operations, customers and service to the Akamai platform in 2013.
“Aligning Akamai’s services with the global reach, scale and product depth of AT&T creates a powerful relationship aimed at helping enterprises optimize their online businesses,” said Paul Sagan, president and CEO of Akamai in a statement. “We believe there will be tremendous value to customers in deploying within AT&T’s robust IP network, and in jointly going to market with leading content delivery and cloud infrastructure offerings.”
The alliance comes less than a month after Akamai announced the acquisition of Westford-based content delivery network business, Verivue. Akamai said the acquisition would help speed up its development of a comprehensive, licensed content delivery network, which allows network operators to pair licensed software with off-the-shelf hardware to form their own content delivery network.
The local Internet giant is still riding the wave from reporting that the third quarter of 2012 was its “best ever,” with a rise in earnings of 14 percent and a profit of $48.2 million, or 27 cents a share.
As of 10:45 a.m., Akamai’s stock was trading at $39.19, near the top of the company’s 52-week range of $25.90 to $40.32.
Source: Mass High Tech