Tags: Fear | cash | tech | takeovers

WSJ: Fear, Cash Spark Onslaught of Tech Takeovers

By    |   Friday, 28 March 2014 08:33 AM

The biggest technology companies are opening up their wallets to make sure they don't get left behind as their industry evolves, The Wall Street Journal reports.

Facebook announced this week that it will buy virtual reality company Oculus for $2 billion, just weeks after it agreed to purchase the messaging company WhatsApp for up to $19 billion.

And last month Google shelled $3.2 billion for Nest Labs, which makes home-control devices.

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It's one of the biggest spate of purchases and investments since the last technology boom of the late 1990s, according to The Journal. Facebook and Google are enabled to throw money around by their booming share prices and the fact that their founders control super-voting shares.

Facebook CEO Mark Zuckerberg "is aware of all the big companies that died because they rested on their laurels," Jeff Richards, a managing partner at venture-capital firm GGV Capital, told The Journal.

"It once took decades to build a company as large as Facebook. Now it takes 10 years."

Facebook, Google, Amazon and Apple each seek to dominate as much of the technology ecosystem as they can, The Journal reports.

Some experts say the tech sector has entered a bubble like the 1990s, but others say it's different this time.

"In 1999, I think the Internet was born, it was a platform, but other than that, no one knew what was going to happen. The value proposition wasn’t as clearly defined," Mark McCaffrey, global software leader for PricewaterhouseCoopers, told Slate.

"Most investments today are really happening after the technology has proven itself and a market has been validated for that technology."

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The biggest technology companies are opening up their wallets to make sure they don't get left behind as their industry evolves, The Wall Street Journal reports.
Fear,cash,tech,takeovers
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2014-33-28
Friday, 28 March 2014 08:33 AM
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