Not so Fast: Cisco Unlikely to Buy Fastly, Piper Says

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Not so Fast: Cisco Unlikely to Buy Fastly, Piper Says

By Christiana Sciaudone

Investing.com --  Not so fast. 

Fastly (NYSE: FSLY ) fell 4% after Piper Sandler (NYSE: PIPR ) said it's unlikely Cisco (NASDAQ: CSCO ) will buy the company. 

Rumors of a takeover circulated last week, which Piper analyst James Fish said would make strategic sense and help Cisco in the cloud world, but Cisco has said it isn't interested in large M&A, according to Seeking Alpha. 

Akamai (NASDAQ: AKAM ) would "make more sense" as a takeover target for Cisco. 

Fastly has rallied more than 300% this year, as one of its biggest customers, TikTok (yes, that TikTok), has had a banner year with the U.S. population largely stuck at home trying to prevent the spread of the coronavirus.

In October Fastly slumped a day after the company released disappointing third-quarter revenue, which dragged down other cloud providers. 

Fastly cited lower spending from TikTop, a top customer, amid ongoing U.S.-China tensions. 

“Due to the impacts of the uncertain geopolitical environment, usage of Fastly’s platform by its previously disclosed largest customer did not meet expectations, resulting in a corresponding significant reduction in revenue from this customer,” the company said in a statement at the time.

A deadline for ByteDance to sell TikTok's U.S. operations on Friday passed and negotiations appear to be ongoing, according to Cnet. ByteDance struck a preliminary deal with Oracle (NYSE: ORCL ) and Walmart (NYSE: WMT ).

 

 

 

 

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