Limelight Networks (LLNW) and Level 3 (LVLT) Jump On Reports They are Stealing Netflix (NFLX) Business Away from Akamai (AKAM)
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Shares of Limelight Networks, Inc. (Nasdaq: LLNW) and Level 3 Communications (Nasdaq: LVLT) are surging, while Akamai Technologies Inc. (Nasdaq: AKAM) is under pressure on speculation the company may lose Netflix (Nasdaq: NFLX) as a customer.
The rumors stem from an article at SeekingAlpha.com, which claims that Limelight and Level 3 will be getting the important Netflix business.
On its conference call last week, Limelight announced that Netflix had extended their contract with Limelight for another three years until the end of 2013.
Level 3 said part of their recent CAPEX spend was, "in support of a large content customer CDN contract we just won in October," although they didn't mention a customer by name.
In response to questions about the Netflix business, Akamai stated, "It's no secret that Netflix has a multiple vendor strategy. We continue to have an ongoing relationship with Netflix but we don't comment on the specifics of customers, contracts or other providers."
Shares of LLNW are up 15.6% and LVLT is up 14% in pre-open trading. AKAM is down 4%.
The rumors stem from an article at SeekingAlpha.com, which claims that Limelight and Level 3 will be getting the important Netflix business.
On its conference call last week, Limelight announced that Netflix had extended their contract with Limelight for another three years until the end of 2013.
Level 3 said part of their recent CAPEX spend was, "in support of a large content customer CDN contract we just won in October," although they didn't mention a customer by name.
In response to questions about the Netflix business, Akamai stated, "It's no secret that Netflix has a multiple vendor strategy. We continue to have an ongoing relationship with Netflix but we don't comment on the specifics of customers, contracts or other providers."
Shares of LLNW are up 15.6% and LVLT is up 14% in pre-open trading. AKAM is down 4%.
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