Sources All Over The Ad Tech Industry Think Google Is Going To Buy Akamai

larry page

Photo: Flickr/Herkko Hietanen

What’s the next big move for Google?We’re not sure, but multiple ad tech industry sources think Google is about to buy Akamai.

We’ve been chasing a rumour that Google is about to make a big ad tech acquisition. The one name that kept coming back at us was Akamai.

At this point, it’s mostly just a rumour, but almost a dozen sources inside and outside of Google are telling us that they’ve at least heard about a looming Google-Akamai deal.

Then again, Akamai is one of those companies that’s always mentioned as a take over target.

Also: a high-level source at Akamai that we talked to shot down Google speculation.

Still, all of our sources think Akamai would be a good fit for Google.

There are two reasons.

REASON ONE: Akamai is sitting on a trove of valuable data that Google could use to vastly improve its business. Akamai delivers video and knows what people are watching, when they’re watching it, and how they’re watching it.  

Google could use that information to improve search, video, display, everything. There’s a huge risk in “sniffing” the data from Akamai to influence other parts of Google as one source put it. Google would have too much information, and it would have even more government regulation.

akam

Photo: Yahoo Finance

REASON TWO: Akamai’s stock has been crushed in the last year. It’s off by 50%, so the company could be had for a decent price. A recent Bloomberg article speculated Akamai would sell for $7.4 billion or more.UPDATE: BONUS REASON THREE: If Google wants to turn YouTube into a cable alternative, Akamai’s technology would be very useful. It would be a fast, efficient way to deliver video.

Update: Google is knocking down this rumour.

If you know what Google is interested in buying, email us at [email protected] or call Jay Yarow at 646.376.6037.

NOW WATCH: Tech Insider videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at research.businessinsider.com.au.

Tagged In

akamai google sai-us