Akamai and AT&T bid for Israeli Startup Cotendo

Akamai Technologies AKAM is reportedly in talks to buy Israeli startup Cotendo for more than $300 million. AT&T T, along with Juniper Networks JNPR, is also said to be eyeing Contendo. Founded in 2008, Cotendo is a competitor of Akamai, as its products also improve website performance. Cotendo's customers include Facebook, Aol AOL Microsoft MSFT, Google GOOG and AT&T. Cotendo raised $39 million in three funding rounds from venture capital funds Sequoia Capital, Benchmark Capital and Tenaya Capital. AT&T is a big customer of both Juniper and Contendo, and it has first refusal rights to acquire the Israeli startup. But Akamai is known for acquiring competitors, particularly those it has sued first, such as Digital Island and Speedera Networks. Akamai sued Contendo for patent infringement a year ago. Cotendo has been up for sale since the suit was filed.