Akamai's Deal with AT&T Gives Shares a Shot in the Arm

Before you go, we thought you'd like these...
Before you go close icon

global network conceptAkamai Technologies Inc. (NASDAQ: AKAM) and AT&T Inc. (NYSE: T) this morning announced an alliance between the two companies to offer "a global suite of content delivery network (CDN) solutions to companies." No dollar value was placed on the agreement, but Akamai shares are getting a nice bounce on the news.

Akamai will install its CDN servers at the edge of AT&T's IP network and in the larger company's U.S. facilities beginning next year. The agreement essentially concedes that AT&T's technology was not the equal of Akamai's. The deal also underscores the fact that the edges of the IP network are not easy to manage and maintain, and indicates that other network providers like Level 3 Communications Inc. (NASDAQ: LVLT) might look to Akamai for help.

In addition to installing new equipment, Akamai has agreed to share tech support, customer service, marketing, and professional services support with AT&T.

Shares of Akamai have jumped more than 10% to $39.06 in a 52-week range of $25.90 to $40.32 on the news.

Paul Ausick


Filed under: 24/7 Wall St. Wire, Internet, Technology Companies, Telecom & Wireless Tagged: AKAM, LVLT, T
Read Full Story

Markets

S&P 500 2,361.13 2.56 0.11%
DJIA 20,659.32 -42.18 -0.20%
NASDAQ 5,897.55 22.41 0.38%
DAX 12,203.00 53.58 0.44%
NIKKEI 225 19,160.07 -57.41 -0.30%
HANG SENG 24,392.05 0.00 0.00%
USD (per EUR) 1.08 0.00 -0.06%
USD (per CHF) 1.00 0.00 0.07%
JPY (per USD) 111.40 0.25 0.23%
GBP (per USD) 1.24 0.00 -0.04%

Want more news like this?

Sign up for Finance Report by AOL and get everything from business news to personal finance tips delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.

From Our Partners

This Elephant Was Separated From Her Mother As A Baby - But She's About To Get A Huge This Elephant Was Separated From Her Mother As A Baby - But She's About To Get A Huge
19 of the Creepiest, Most Inexplicable Things People Ever Experienced 19 of the Creepiest, Most Inexplicable Things People Ever Experienced
Man Built This Contraption In His Backyard - And Even He Was Surprised How Well It Worked Man Built This Contraption In His Backyard - And Even He Was Surprised How Well It Worked