Inktomi Corp.continued its buying spree today with the purchase of FastForwardNetworks for $1.3 billion in stock. Inktomi develops software that increasesthe flow of Internet data, and announced in March that it would bring its softwareto wireless with offerings to carriers, portals and enterprises.
Inktomi will exchange 11.9 million shares of its stock forthe company, under terms of the sale agreement. The plan is to combine Inktomi'sofferings with FastForward's Internet broadcasting software platform, the companysays.
Committing itself to wireless, Inktomi this year investedAirFlash Inc. for mobile phone Internet services and partnered with Cap Gemini,Portal Software, Hewlett-Packard Co., Sun Microsystems Inc., Spyglass Inc. andwireless application service provider GWcom Inc. for what the company calledan end-to-end mobile solution.
Inktomi's stock price today fell slightly in morning tradingabout 0.17 percent to $110 13/16 as of 11:15 a.m. EDT.
With the current economic climate, wireless operators face shrinking marketing budgets and reduced consumer spending.
Globally, the credit crunch is very much alive, and operators will be tightening their belts into the foreseeable future by putting off capital purchases.
