Friday, June 18, 2010

Eating the Little Guy: How Tech Companies Grow

Here's an interesting story about how tech companies grow. Citing bargain basement prices on name brands such as Iomega, Sun, Palm and 3com, companies such as HP and Oracle have been swooping in and buying them with a frenzy. This is part of an industry wide trend over the last decade where big companies eat smaller companies in order to grow. Microsoft, Apple, Google, IBM, along with Sun and Oracle have built there empires through these acquisitions. Sometimes this leads to indigestion as some investments don't work out, as with HP's acquisition of Palm or Ebay's purchase of Skype. The article sheds light on why tech companies are unique in comparison to traditional companies in terms of acqusitions.

Read the article.

Submitted by Judi

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