Akamai Technologies to Buy InterVU

Akamai Technologies Inc., a maker of software that speeds Web browsing, agreed to buy San Diego-based InterVU Inc. for about $2.8 billion in stock to offer more audio and video services over the Internet. Akamai said it will swap 0.5957 share of its stock for each InterVU share, or about $136.19. Companies including CNN.com, CNet and Microsoft use InterVU services to broadcast events, radio and other media on their Web sites. CNN bought a $20-million stake in InterVU in November, and Microsoft invested $30 million in it in December.

Akamai’s network of 2,200 servers help graphics such as banner ads and pictures load quickly onto Web sites by rerouting them around bottlenecks on the Internet. The two firms have many of the same customers. Akamai said the transaction will add to its revenue, though it did not say when the combined company would earn a profit. Akamai had sales of nearly $4 million last year. InterVU had sales of $6.56 million for the first nine months of 1999. Akamai shares fell $6.38 to close at $228.63, and InterVU rose $12.38 to close at $129.38, both on Nasdaq.