Inktomi Sounds Off with Major Buy

Inktomi Corp. made a major play
Wednesday by nabbing broadcasting software provider FastForward Networks for $1.3
billion in stock.


Inktomi will trade 11.9 million shares of common stock
for all outstanding shares, options and warrants of FastForward Networks.
The sum of the deal is based on Inktomi’s Sept. 12 closing price of $111 per
share.


What does a caching and search technology company want with a firm that
lives to sound off online? To dip into media, of course. Inktomi wants to
expand on the “content is king” theory with Wednesday’s play after forming a
“content bridge” with Adero and America Online Inc.
in August.


In that deal, for which financial terms were not disclosed, Inktomi agreed
to deliver infrastructure Adero promised to ensure updated content and
billing while AOL simply promised to deliver it all across its network.


Inktomi said it feels Wednesday’s deal will help it plunge into the media
infrastructure field and enable the company to target the Net broadcast
market, projected to reach $40 billion by 2003.


In scooping up FastForward Networks, Inktomi will offer a foundation for Net
broadcasting to its content delivery networks and service provider clients.


FastForward Networks brings clients such as Digital Island
and The Real Broadcast Network to the table. The deal also makes sense
because both Inktomi and its new acquisition share clients.


FastForward Networks will operate under the Inktomi name as the Media
Division led by president and chief executive officer of FastForward
Networks Abhay Parekh. All employees of FastForward Networks will join
Inktomi.


The transaction is expected to close in the quarter ending December 31,
2000.

News Around the Web