Now that Yahoo Inc. is being sold, what other struggling tech companies might soon find themselves on the auction block?
Several other technology firms would seem to be candidates because their businesses are faltering and their stock prices have tumbled in recent years.
That's how Yahoo ended up agreeing last week to sell its internet assets to Verizon Communications Inc. for $4.83 billion.
Tech mergers also are in full swing at the moment. So far this year, there have been more than 5,000 deals announced worldwide valued at $355 billion, by far the most merger activity of any industry, according to the research firm Dealogic.
One reason: Many tech companies have struggled with execution, unforeseen competition, management turnover and other woes. That's prompted disaffected investors to keep pushing share prices lower, leaving the companies with market values that are well below their highs and luring buyers.
"These companies often come to market with more hope than financial wherewithal," said Rob Enderle, president of the technology strategy firm Enderle Group Inc. "Then there's an adjustment when expectations and reality don't match up."
That's especially true for firms that initially "were internet darlings" such as Yahoo, "but that's been a problematic sector ever since we had the dot-com collapse" in 2000, Enderle said.
So what companies might end up following Yahoo into the sales aisle? Here are five possibilities _ after all, anything is for sale at the right price. But none of these is involved in any announced transaction.
Only one of the companies, Yelp Inc., responded to requests for comment on whether it might be a merger candidate; Yelp said it does not comment on speculation or rumor.
