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Filed by Akamai Technologies, Inc.
Pursuant to Rule 425 under the Securities Act of 1933
and deemed filed pursuant to Rule 14a-12 of the
Securities Exchange Act of 1934
Subject Company: Akamai Technologies, Inc.
Commission File No.: 000-27275
PRESS RELEASES
AKAMAI CONTACT: INTERVU CONTACT:
Jeff Young Anjeanette Rettig
Marketing Manager 858-623-8400 x134
Akamai Technologies
617-250-3913
[email protected]
AKAMAI TO ACQUIRE INTERVU TO FORM LARGEST
INTERNET STREAMING MEDIA AND BROADBAND
CONTENT DELIVERY COMPANY
$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,
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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
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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, Inc. is headquartered in Cambridge, Massachusetts, and has
offices in Cupertino and San Mateo, California; and Munich, Germany; Paris,
France; and London, England. Akamai provides global Internet content, streaming
media, and applications delivery services for hundreds of customers, improving
Web site speed and reliability and enabling richer, more engaging Web site
content. To date, Akamai has delivered millions of high-quality audio and video
streams. Currently, Akamai has deployed over 2,000 servers in excess of 40
countries across more than 100 different telecommunications networks. Akamai
(pronounced AH kuh my) is Hawaiian for intelligent, clever and cool. Additional
information can be found at www.akamai.com.
# # #
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.
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