Inktomi Corp

Yahoo Inc. said Monday that it would pay $235 million to buy Internet search-software maker Inktomi Corp., strengthening its position in the growing Web search business. The cash deal of $1.65 a share valued Inktomi, a highflier during the Internet boom, at a 41% premium to Friday's close but at less than a third of its value at its 1998 initial public offering -- and at a fraction of its peak share price of $241 in 2000.

Inktomi Corp., an Internet software maker, has loaned Chief Executive David Peterschmidt $4.9million to avoid "negative inferences" that would arise if he sold his stock.

Inktomi Corp., whose software speeds delivery of Internet traffic, said its fiscal second-quarter loss was wider than analysts' forecasts because companies are buying less software.

Electronic commerce software giant Ariba Inc. led a pack of at least a dozen other Internet companies in issuing profit warnings Monday, signaling that the long-awaited recovery of the tech sector may take longer to arrive than previously thought.

Inktomi Corp., whose software speeds the flow of Internet content, said fiscal first-quarter earnings and sales will fall short of forecasts, joining many other technology companies that cut their targets.

On a bad day for technology stocks overall, software companies took an especially hard fall Wednesday as several companies failed to meet growth expectations or were hit with downgrades by Wall Street analysts, or both.

Inktomi Corp. said Wednesday it is adding to its toolbox of technology that powers some of the Internet's most popular sites with a plan to purchase online broadcasting company FastForward Networks for $1.

Inktomi (INKT) Jim: (Don't buy) Mike: (Don't buy) Mike: This stock is something of a major departure for us. Jim: As far as what? Mike: Well, I believe--you can correct me on this--that Inktomi is the first stock we've discussed whose name derives from the Lakota Indian language.