Google Not Buying Akamai. Who Starts These Baseless Rumors?

Baron's says Akamai "shares are trading higher in a down market this morning amid rumors that the company might be a takeover target for Google." Baron's is only reporting what they hear, but seriously, who starts these rumors? Why would Google buy Akamai? They don't need a CDN, they have their own. And even if they needed more capacity or reach, they would not spend billions to acquire it. They could build it for a fraction of that cost.

Not to mention, what would Google do with all of Akamai's customers? And why would Google pay to buy a bunch of servers and infrastructure that is dedicated to deliver content using Microsoft's technology? And for some who say that Google would want Akamai's revenue, they would not deliver content for Microsoft, so how much revenue is that alone they would lose?

I can't think of one single reason that makes sense on why Google would buy Akamai, unless Google wanted to get into the business of delivering content for third party content owners, which would not help their core business in any way.

  • qualityofservice

    YouTube is part of Google, and wouldn’t YouTube benefit from owning a CDN?

  • http://www.ramprate.com Steve Lerner

    Google essentially is a CDN- they have deployment, network, software, ops, engineers, traffic management- everything they need. No reason to buy another CDN unless they wanted to enter the CDN industry for strategic reasons.

  • CM

    I’d rather see Google buy Adobe personally.

  • SKMBabai

    Do you (Dan) have any any sense other than bashing Akamai and it’s share to rise. If you have shorted a stock, does it mean that the whole universe has to see the world through your eyes. You are a total failure in your research and please stop posting further with comments like “… I think…”
    We have seen you value and now request you to stop bother AKAMAI…

  • http://www.BusinessOfVideo.com Dan Rayburn

    @SMKBabai: I have disclosed on my blog numerous times that I have never bought, sold or traded shares in any public company – ever. Meaning, I’m not “shorting” Akamai and have no vested interest in their stock price.
    The more Akamai investors like yourself post with comments like this on my blog, the more I will write about Akamai as it shows you guys clearly need the education.

  • http://robertsandie.com Robert Sandie

    Don’t think it would happen either.
    Let’s just say Google purchased Akamai. They could probably optimize datacenters that Akamai owns and use peering relationships to drive price points even lower.
    Microsoft products would stay supported. No reason to cut that revenue stream. Microsoft wouldn’t stop selling to them either. Google then opens up a S3′ish CDN with ridiculously low price’s with a premium option, and they deliver all the bits on the internet, and takeout all other CDNs. Hmm..

  • http://www.BusinessOfVideo.com Dan Rayburn

    What? You think Microsoft would let Google deliver content for searches on Bing.com? That’s what Akamai does now. Same with MSNBC and lots of other MSFT content. No way that business would stay with Google. Google would not want it, and even if they did, Microsoft would pull it.
    Also, Akamai does not “own” any data centers. They rent space just like everyone else. Google probably already gets a better rate than Akamai does just based on their sheer volume. And even if Google opened an S3 type Amazon CDN service, remember that Amazon’s CDN service does not support streaming, live broadcasting, have an SLA, support number etc…..

  • John C

    If anything Google would develop a CDN, use it internally and eventually give it away for free. Much like it has done with it’s Apps/Gmail/Analytics/Maps/Earth/Android, and the list goes on and on! I imagine Google already has a pretty decent CDN delivering content for Ads as well as a large portion of YouTube.

  • http://www.zoombits.co.uk/computer-accessories/sound-communication webcam

    Seems like a match in heaven. I wouldn’t be surprised if we saw this headline for real some day.

  • EarnestJ.

    Dan,
    SMKBabai has a point. You clearly have some bitterness or jealousy towards Akamai for some reason. It openly shows in your blog. Although maybe its nothing personal with Akamai, some people are just sour about a lot of things. Regardless, there really isn’t much of value to take away from your two cents worth about a Google Akamai deal. No one is looking to you for clarity on this subject.

  • http://www.BusinessOfVideo.com Dan Rayburn

    This post is about Google buying Akamai, yet you don’t seem to be talking about that at all. Instead you want to ramble on about me. The story is not about me, it’s about Google and Akamai.
    You say, “no one is looking to you for clarity on this subject,” yet you read the post and then took the time to send in a comment.

  • http://www.cityequities.com/ Shares to Buy

    Google has the acquiring power, but you are correct to ask why would Google spend billions acquiring when they could develop capacity at a fraction of the cost.