Finally, the price for Akamai Technologies Inc.might be low enough to lure IBM or Verizon Communications Inc. into purchasing it. If purchased, this would be one of the most speculated takeovers in the US since 2005 with the lowest valuation on record.
In the third biggest drop on the Nasdaq 100 index in the last 12 months, shares Akamai dropped to 57 percent. Its market value, which was $9.9 billion until last year, is now only $3.8 billion.
According to data compiled by Bloomberg, Akamai is more affordable than 94 percent of the U.S. Internet software developing giants.
IBM, which is on the hunt for lucrative takeovers, may start to show lot more interest in acquiring Akamai now. Even Verizon, the largest U.S. wireless operator, is expected to show interest in the same acquisition. These predictions have been made by Blaylock Robert Van LLC and SunTrust Robinson Humphrey Inc.
In a telephone interview Joel Achramowics, an analyst at investment bank Blaylock Robert Van said, “It’s a no-brainer for someone like IBM who wants a very dynamic, global, mission-critical content distribution network." About Akamai, he commented, “It represents a very compelling acquisition target.”