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Akamai CEO Sagan To Step Down By End Of 2013

Akamai Technologies announced that president and CEO Paul Sagan plans to relinquish his role by the end of 2013, and the content delivery network provider said it has initiated a search for a successor.

Also Wednesday, Akamai reported first-quarter 2012 results, posting revenue of $319 million, up 16% year over year, and net income of $43 million, a 15% decline from the year-earlier period.

Akamai's board of directors has formed a search committee to select a new CEO and has retained executive-recruiting firm Heidrick & Struggles to identify potential candidates, the company said.

Akamai's CDN services are designed to accelerate data and video deliver over the Internet. The Cambridge, Mass.-based company's customers include Apple, Discovery Communications, Fox Interactive, NBC and NBCOlympics.com, MLB.com, MTV Networks, Ooyala, Starz Entertainment, Turner Sports, Verizon Wireless and Yahoo.

Sagan was appointed president in 1999 and has led Akamai as CEO since 2005, when he was also named to the company's board. Sagan has committed to continue leading the company until his successor is named, according to Akamai.

"For nearly a decade and a half, Akamai has been on an incredible journey, prevailing against enormous odds and challenges to become a global leader in Internet technology and services," Sagan said in a statement. "With the company demonstrating strong growth and business results, and as I approach my fifteenth year helping to lead the business, I have concluded this is the ideal time for the board to select the company's next leader to drive Akamai's continued growth for many years to come."

In a prepared statement, Akamai chairman George Conrades and Sagan's predecessor as CEO said, "As a result of Paul's insightful leadership and guidance, Akamai has been transformed from a successful startup company into an S&P 500 global leader. We thank him for his contributions as CEO even as we work together to prepare for what we are confident will be the next period of leadership and growth at Akamai."