When the Internet economy was booming, they would put a valuation on themselves that would have been ridiculous. Tanking stock prices have created a discount bazaar for those companies that still aim to expand, some analysts say, resulting in a flurry of corporate marriages. There are companies available on the cheap right now. Historically, economic slowdowns have been periods of decreased merger activity. And if the current tough times persist, that trend is likely to hold true, he added.
Some analysts see last week's spurt of deals as an aberration.
But for some buyers, with the value of many technology companies off 90 percent or more from their highs, the bargains are too good to pass up, especially for companies with cash on hand. The hardest part, say some analysts, may be finding the appropriate currency with which to make deals. When technology stocks were more valuable, companies could readily snap up smaller competitors by issuing more of their stock. That came to bear with the sale of Sequoia to Citrix Systems Inc., which paid cash. These companies are in many cases dealing with a lot of difficulties.