US Internet giant Inktomi Corp has agreed to buy online broadcast software developer FastForward Networks for $1.29 billion.

The deal will let Inktomi add live broadcasting technology and management to its existing products - that currently offer Net searches and manage Internet traffic for customers such as ISPs, content delivery and hosting companies.

The stock deal between the two San Francisco-based companies is Internet infrastructure Inktomi's biggest acquisition yet. It will swap 11.9 million of its shares for all Fast Forward stock. It will also take a charge of $25 million in Q4, when the deal is expected to close, to cover banking costs related to the agreement.

FastForward's 75 staff will become part of a media arm at Inktomi, to be headed by FastForward co-founder and CEO Abhay Parekh.

Inktomi reckons the Internet broadcast market will be worth $40 billion by 2003. ®

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