Why a Sudden Surge in Tech M&A? Startups Pay Attention

11 thoughts on “Why a Sudden Surge in Tech M&A? Startups Pay Attention”

  1. Om
    You did a post last year where you asked for a list of top acquisition candidates. Curious as to how the comments fared. Don’t think any of the ones I mentioned have happened but I’m still bullish on them, Citrix especially given their Xen Server work. Any predictions?

    Ken

  2. We certainly see this and agree that this is only going to accelerate. Perhaps more importantly, it will be accompanied by a similar surge in the number of strong, growing, independent businesses (which Heroku firmly intends to be a part of.) The combination of the inherent agility of being a startup, the reduced capital requirements and faster time to market of cloud, and the exciting advent of new platforms and capabilities like Twitter, Facebook, iPhone/iPad, Android, and real-time data are all driving a new wave of innovation. They are also driving business models where new independent companies can thrive.

  3. Not only M&A, but there have been some really big rounds as of late as well. 8-figure rounds are, all of a sudden, all over the place.

    One note on Associated Content: everyone is pointing to AC being a big driver for more original content via SEO which will ultimately mean display revenue. While that’s true in some part, the one thing most journalists haven’t reported on is that AC gives Yahoo! a tailor-made low-cost custom publishing arm. Years ago this was done only done in print (Time Inc and Meredith etc doing custom magazines for owners of, say, Volvos) but those same clients are moving away from pricey print projects and putting that into large-scale custom editorial on the web — video, how-to articles, etc. Those clients have found their ad agencies charge too much for these services, so the media companies with low-cost edit strength can (and are already) filling in to the tune of large $.

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