Wednesday, October 05, 2005

Internet Companies and Possibility of Bubbles

CNN Money: Internet deals: A tangled Web, Merger mania is alive and well online. But are niche Internet media stocks priced to perfection?

"Frenetic is the best way to describe the pace of consolidation in the online sector during the past few months. Media giant News Corp. (Research) has made three significant Web deals since July. Yahoo! (Research) acquired a significant stake in Chinese Net firm Alibaba.com last month. And eBay (Research) followed up its Shopping.com deal from June with last week's buyout of Internet phone service Skype."

"All this activity has led to increased speculation about who's next to join the mating dance. There are only a handful of appetizing public Internet companies left. So not surprisingly, shares of several of them have surged lately."

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