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Article

Title: Ravenous for Small Tech

Author: Holahan, Catherine Article Type: Product Analysis
Source: Business Week, n4078 p38(2) Publication Date: Apr 7, 2008
  ISSN: 0007-7135
URL of Publication: http://www.businessweek.com

Financially successful tech companies are finding themselves in a good position to make acquisitions due to lowering prices, and desirable yet faltering companies are finding that a friendly takeover may be their best option. It is the tech bellwethers that have cash to spare: eBay's PayPal purchased Fraud Sciences, a payment security firm, for $169 million; Microsoft is bidding $44 billion for Yahoo!; Oracle offered $8.5 billion for BEA Systems; Hewlett-Packard bought Opsware for $1.6 billion; and Time Warner's America Online agreed to spend $850 million on Bebo, a social network. Tech companies are looking for bargains due to the slowing economy and market malaise that has decreased the value of many potential targets. Part of the acquisition and consolidation craze has to do with companies trying to offer customers a single provider that can present a whole suite of applications that work well together. High-tech mergers and acquisitions surged 132 percent in terms of total dollar value in the first quarter of 2008 compared to the first quarter in 2007. Overall, mergers and acquisitions are down, with the most prominent declines occurring in consumer staples, telecom, and energy. Given the market, many startups interested in raising money consider being bout better than an IPO.

Companies:
AOL LLC BEA Systems Inc
Bebo Inc eBay Inc
Hewlett-Packard (HP) Co Microsoft Corp
Opsware Inc Oracle Corp
PayPal Inc Time Warner Inc
Yahoo! Inc

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