Throwing a long deep ball to the endzone here after some pretty underwhelming picks lately. I am not feeling too confident about the market in general but I do think that at today's price, Akamai has been so beaten down and has become so cheap, that someone will buy them.
Who would do it? Well, CSCO has a king's ransom of cash and short-term investments, and could make themselves relevant again with a purchase of this leader in streaming.
NFLX could buy Akamai so as to have vertical synergy with its streaming business.
As recently as January of 2011 Akamai was valued around $9.6 billion, now it its market cap is only $4.2 billion. It is just begging to be bought. Really, a pittance for a company like Cisco with $43 billion in cash and short-term investments.
Recently Cisco announced it would exit its consumer business altogether (most notably abandoning its Flip Video line) in order to refocus. "We are making key, targeted moves as we align operations in support of our network-centric platform strategy," said John Chambers, Cisco chairman and CEO.
Cisco has a lot of money, and yet they are not a household name. They have almost no cultural relevancy. Their grand strategy though with network telepresence and video conferencing may be to basically provide the entire network – for businesses and consumers. Moving bits is as important as anything else in the connected future, and although they are on the hardware side (not the pipe) this is what Cisco’s always done.
Is Cisco really going to do this? I don't know. To me, they have to put that money to work somehow. But even if it's not them, I suspect someone else will snatch up Akamai.