Akamai to Acquire INTERVU to Form Largest Internet Streaming Media and Broadband Content Delivery Company
Akamai, the exclusive network provider for Apple QuickTime TV, will combine its global network with that of INTERVU, a pioneer in the quickly expanding streaming market. Together, the two companies will support all leading streaming media formats, and will have over 1,000 customers, including AOL MovieFone, Apple, CBS Corporation, CNN, General Motors, GO Network, IBM, Microsoft, NBC, Paramount Digital Entertainment, Quokka Sports, Turner Broadcasting, Universal Studios, and Viacom.
The companies will jointly have more than 3,000 servers in 100 networks across 40 countries, expanding upon what was already the largest fault-tolerant network for the delivery of streaming media. The company's headquarters will remain in Cambridge, MA, and will include offices in Atlanta, Chicago, Cupertino, London, Los Angeles, Munich, New York, Paris, San Diego, San Mateo, Seattle, and the Washington D.C. area.
"By combining with INTERVU we will create the hands down leader in the field of Internet streaming," said George Conrades, chairman and CEO of Akamai. "INTERVU's powerful customer base and proven track record, together with Akamai's innovative technology and global network, is a winning and complementary combination. This merger will solidify Akamai's position in the streaming arena and will provide customers with the most comprehensive, end-to-end content delivery solution in the market today. Following our recent acquisition of Network24, our agreement with INTERVU will ensure that Akamai will play the leading role in defining the future direction for streaming content over the Web."
"By joining forces with an organization of Akamai's caliber, we can truly empower our customers with the broadest range of content delivery solutions available. Our combined company will be poised to become the de facto standard for integrated media delivery services," according to Harry Gruber, founder and CEO of INTERVU. "We are confident that together we will introduce a new generation of streaming, including enhanced performance and reliability, to the Web's top properties."
By acquiring INTERVU, Akamai believes it will be best positioned in the market to offer:
Integrated Applications -- meeting customer demand for solutions that combine the delivery of streaming media with dynamic and personalized content, and enable an interactive broadband media experience over a high-performance delivery network.
Broadest Network Reach -- integrating INTERVU's network of regional staging hubs for audio and video with Akamai's global, edge delivery network, the combined companies will create a single, massive platform that incorporates broadband networks and satellite distribution, for the delivery of high quality streaming media.
Proven Expertise -- deploying the most experienced team in the industry, including hundreds of employees who are focused on providing world-class streaming services.
Comprehensive Solution -- offering broadest range of end-to-end streaming media solutions, including signal acquisition, production, encoding and delivery as well as value added services from applications such as the Network24 Qcast offering from Akamai and Netpodium from INTERVU.
Under terms of the agreement, Akamai will acquire INTERVU by issuing approximately 9.3 million shares of Akamai common stock in exchange for all outstanding shares of INTERVU stock. Additionally, Akamai will convert outstanding INTERVU stock options and warrants into approximately 2.8 million Akamai options and warrants. The merger will be effected on a tax-free basis to INTERVU stockholders and will be accounted for as a purchase. The acquisition is subject to certain closing conditions, including regulatory approvals and the approval of INTERVU stockholders, and is expected to close during the second quarter of 2000.
About INTERVU Inc.
INTERVU provides Web site owners and content publishers with services for the delivery or "streaming" of live and on-demand video and audio content over the Internet. INTERVU's services automate the publishing, distribution and programming of video and audio content. INTERVU's customers use its video and audio distribution services to transmit entertainment, sports, news, advertising, business communications, and distance learning content. INTERVU's current customers include CNET, CNN, Excite@Home, House of Blues, Investor Broadcast Network (formerly Vcall), Microsoft, MSNBC, NBC, NetRadio.com, Quokka Sports, Saatchi & Saatchi, Tunes.com and Turner Broadcasting. Additional information can be found at www.intervu.net.
About Akamai
Akamai Technologies is headquartered in Cambridge, Massachusetts and has offices in San Mateo and Cupertino, California, and Europe. Akamai is the leader in distributed content, streaming media, and applications delivery, serving over 225 of the Web's most popular properties including over 100 leading e-commerce companies. Akamai has deployed the broadest global network for content, streaming media, and applications delivery with more than 2000 servers in over 40 countries directly connected to more than 100 different telecommunications networks. Akamai (pronounced AH kuh my) is Hawaiian for intelligent, clever and cool.
Except for the historical information contained herein, this news release contains forward-looking statements that are subject to risks and uncertainties that might cause actual results to differ from those foreseen, including the market acceptance for INTERVU's specialized services, technological change and intense competition, as well as the other risks detailed from time to time in INTERVU's SEC reports, including the report on Form 10-K filed on March 30, 1999.
The release contains information about future expectations, plans and prospects of Akamai's management that constitute forward-looking statements for purposes of the safe harbor provisions under The Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those indicated by these forward-looking statements as a result of various important factors including, but not limited to, the dependence on Akamai's Internet content delivery service, a failure of its network infrastructure, the complexity of its service and the networks on which the service is deployed, the failure to obtain access to transmission capacity and other factors that are discussed in the Company's Registration Statement on Form S-1 and other documents periodically filed with the SEC.
| Contacts: |
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| Jeff Young Akamai Technologies 617-250-3913 jyoung@akamai.com |
--or-- | Anjeanette Rettig Akamai Technologies 858-623-8400 x134 anjeanette.rettig@akamai.com |
$2.8 billion acquisition to create industry leader with over 1,000 customers
CAMBRIDGE, MA and SAN DIEGO, CA, February 7, 2000 -- Akamai Technologies (NASDAQ: AKAM), the foremost provider of global, high performance services for the delivery of Internet content, streaming media, and applications, and INTERVU Inc. (NASDAQ: ITVU), the leading service provider for Internet audio and video delivery solutions, announced today that they have signed a definitive agreement for Akamai to acquire INTERVU in a stock-for-stock transaction valued at approximately $2.8 billion. Each share of INTERVU common stock will be exchanged for 0.5957 shares of Akamai common stock. Upon closing, this acquisition will make Akamai the largest global provider of Internet content, audio and video delivery services.Akamai, the exclusive network provider for Apple QuickTime TV, will combine its global network with that of INTERVU, a pioneer in the quickly expanding streaming market. Together, the two companies will support all leading streaming media formats, and will have over 1,000 customers, including AOL MovieFone, Apple, CBS Corporation, CNN, General Motors, GO Network, IBM, Microsoft, NBC, Paramount Digital Entertainment, Quokka Sports, Turner Broadcasting, Universal Studios, and Viacom.
The companies will jointly have more than 3,000 servers in 100 networks across 40 countries, expanding upon what was already the largest fault-tolerant network for the delivery of streaming media. The company's headquarters will remain in Cambridge, MA, and will include offices in Atlanta, Chicago, Cupertino, London, Los Angeles, Munich, New York, Paris, San Diego, San Mateo, Seattle, and the Washington D.C. area.
"By combining with INTERVU we will create the hands down leader in the field of Internet streaming," said George Conrades, chairman and CEO of Akamai. "INTERVU's powerful customer base and proven track record, together with Akamai's innovative technology and global network, is a winning and complementary combination. This merger will solidify Akamai's position in the streaming arena and will provide customers with the most comprehensive, end-to-end content delivery solution in the market today. Following our recent acquisition of Network24, our agreement with INTERVU will ensure that Akamai will play the leading role in defining the future direction for streaming content over the Web."
"By joining forces with an organization of Akamai's caliber, we can truly empower our customers with the broadest range of content delivery solutions available. Our combined company will be poised to become the de facto standard for integrated media delivery services," according to Harry Gruber, founder and CEO of INTERVU. "We are confident that together we will introduce a new generation of streaming, including enhanced performance and reliability, to the Web's top properties."
By acquiring INTERVU, Akamai believes it will be best positioned in the market to offer:
Integrated Applications -- meeting customer demand for solutions that combine the delivery of streaming media with dynamic and personalized content, and enable an interactive broadband media experience over a high-performance delivery network.
Broadest Network Reach -- integrating INTERVU's network of regional staging hubs for audio and video with Akamai's global, edge delivery network, the combined companies will create a single, massive platform that incorporates broadband networks and satellite distribution, for the delivery of high quality streaming media.
Proven Expertise -- deploying the most experienced team in the industry, including hundreds of employees who are focused on providing world-class streaming services.
Comprehensive Solution -- offering broadest range of end-to-end streaming media solutions, including signal acquisition, production, encoding and delivery as well as value added services from applications such as the Network24 Qcast offering from Akamai and Netpodium from INTERVU.
Under terms of the agreement, Akamai will acquire INTERVU by issuing approximately 9.3 million shares of Akamai common stock in exchange for all outstanding shares of INTERVU stock. Additionally, Akamai will convert outstanding INTERVU stock options and warrants into approximately 2.8 million Akamai options and warrants. The merger will be effected on a tax-free basis to INTERVU stockholders and will be accounted for as a purchase. The acquisition is subject to certain closing conditions, including regulatory approvals and the approval of INTERVU stockholders, and is expected to close during the second quarter of 2000.
About INTERVU Inc.
INTERVU provides Web site owners and content publishers with services for the delivery or "streaming" of live and on-demand video and audio content over the Internet. INTERVU's services automate the publishing, distribution and programming of video and audio content. INTERVU's customers use its video and audio distribution services to transmit entertainment, sports, news, advertising, business communications, and distance learning content. INTERVU's current customers include CNET, CNN, Excite@Home, House of Blues, Investor Broadcast Network (formerly Vcall), Microsoft, MSNBC, NBC, NetRadio.com, Quokka Sports, Saatchi & Saatchi, Tunes.com and Turner Broadcasting. Additional information can be found at www.intervu.net.
About Akamai
Akamai Technologies is headquartered in Cambridge, Massachusetts and has offices in San Mateo and Cupertino, California, and Europe. Akamai is the leader in distributed content, streaming media, and applications delivery, serving over 225 of the Web's most popular properties including over 100 leading e-commerce companies. Akamai has deployed the broadest global network for content, streaming media, and applications delivery with more than 2000 servers in over 40 countries directly connected to more than 100 different telecommunications networks. Akamai (pronounced AH kuh my) is Hawaiian for intelligent, clever and cool.
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Except for the historical information contained herein, this news release contains forward-looking statements that are subject to risks and uncertainties that might cause actual results to differ from those foreseen, including the market acceptance for INTERVU's specialized services, technological change and intense competition, as well as the other risks detailed from time to time in INTERVU's SEC reports, including the report on Form 10-K filed on March 30, 1999.
The release contains information about future expectations, plans and prospects of Akamai's management that constitute forward-looking statements for purposes of the safe harbor provisions under The Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those indicated by these forward-looking statements as a result of various important factors including, but not limited to, the dependence on Akamai's Internet content delivery service, a failure of its network infrastructure, the complexity of its service and the networks on which the service is deployed, the failure to obtain access to transmission capacity and other factors that are discussed in the Company's Registration Statement on Form S-1 and other documents periodically filed with the SEC.
