Akamai jumps on report of a strategic review by Morgan Stanley

  • Shares of cloud service provider Akamai jumped Tuesday on a report of a strategic review by Morgan Stanley.
  • The review could potentially put the company up for sale.
  • Bloomberg reports the review is prompted by pressure from Elliott Management, which bought a 6.5 percent stake in the company in December.
Akamai display
Source: Akamai

Shares of cloud service company Akamai jumped Tuesday on a Bloomberg report of a strategic review by Morgan Stanley that could potentially put the company up for sale.

The stock rose as much as 5 percent in afternoon trading.

Bloomberg reports the review is prompted by pressure from Elliott Management, which bought a 6.5 percent stake in the company in December.

The hedge fund at the time indicated it would push the company to curtail wasteful spending and to improve what it deemed poor strategic planning for expanding into new markets, sources told Reuters.

Akamai reported net income of $60 million in the last quarter, according to SEC filings, down more than 20 percent from the same period the year before.

This is a developing story. Please check back for updates.

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