Akamai Technologies Inc is in the news yet again as a potential takeover target by IBM or Verizon Communications named as likely suitors. The company supplies computing resources to Internet majors such as Apple and Netflix in the delivery of their internet content.
Akamai’s shares have slumped over 57% in the last year and is currently valued a mere 7.6 times EBITDA, and near a previous, record 2008 low. These valuations may prove attractive to IBM , known to be on the lookout for takeover opportunities. “It’s a no-brainer for someone like IBM who wants a very dynamic, global, mission-critical content distribution network,” Joel Achramowicz, an analyst at investment bank Blaylock Robert Van.
However, “we don’t see any need to be bought,” said Tom Leighton, Akamai’s co-founder and chief scientist, in an interview yesterday at Bloomberg’s New York headquarters. “Akamai is very attractive. We’re very unique in what we do. We’d be of interest to any big player that cares about the Internet.”
Akamai is trading at $21.46 today, up 4.38%. Shares are down 57.09% in one year. The stock’s trading range for the year is between $18.25 and $54.65.
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