Highly competitive cyber world

Published: 31 October 1999 y., Sunday
The supercharged IPO market has spawned a large number of Net companies, many of which are fighting fierce battles trying to dominate their respective spaces. However, many of these companies will soon realize that it is better to join forces-through mergers and acquisitions-then to destroy each other. There was evidence of this on Tuesday, when bamboo.com (BAMB) announced a merger with Interactive Pictures (IPIX). Both companies are recent IPOs and are in similar businesses. At bamboo.com, users can get 360-degree panoramic virtual tours of homes. Interactive Pictures uses so-called spherical pictures to allow for virtual tours, focused on such industries as travel and entertainment. Thus, with the merger, not only did the companies eliminate unnecessary competition, but also expanded their markets. In fact, there was another such consolidation on Monday, when Digital Island (ISLD) merged with Sandpiper Networks. The companies both provide hosting and intelligent network services. With the merger, the companies were able to expand their customer bases, as well as technology infrastructures. For example, the new company will have 1,200 Web servers within 21 countries. On the news, shares of Digital Island soared 15-11/16 to 38-11/16. Expect the consolidation wave to run strong, as companies attempt to reduce competition,add to their customer bases and product lines. This raises the question: What are the areas to look at for investment opportunities? Here_s a look:
Advertising Networks: CMGI (CMGI) has been acquiring companies in this space at a furious pace, attempting to one-up DoubleClick (DCLK).
Healthcare: True, the online healthcare industry is huge. We_ve already seen consolidation between WebMD and Healtheon, but there will be others. Number one pick: drKoop.com (KOOP). The stock has been languishing, yet it has a strong online brand and in September, logged 14.7 million page views, making the site the No. 1 for healthcare. It would make an attractive acquisition target at its current valuation.
Music: The clear market leader in online music is MP3.com (MPPP), which sports a $2.8 billion market capitalization. To compete against this colossus, the competition will need to quickly consolidate. These companies include eMusic, Musicmaker, Liquid Audio (LIQD) and Launch. Of these, Liquid Audio looks the strongest, with a stable of 4,700 artists, 750 record labels and 37,000 songs.
Online Brokers: To compete, online brokerage firms need to provide many new services, such as distributing IPOs to individual investors. Friedman Billings Ramsey (FBR) has been growing its innovative online investment bank, located at fbr.com. Since starting six months ago, the site has distributed 19 offerings, such as RedHat, Cysive and Jupiter Communications. This expertise would be a nice addition to an online broker trying to distinguish itself in the highly competitive cyber world.
Šaltinis: Stock Report Archives
Copying, publishing, announcing any information from the News.lt portal without written permission of News.lt editorial office is prohibited.

Facebook Comments

New comment


Captcha

Associated articles

The most popular articles

Commission recommends to open excessive deficit procedures for Cyprus, Denmark and Finland

The European Commission today concluded on the existence of excessive deficits in Cyprus, Denmark and Finland and recommended deadlines for their correction to the Council. more »

Globalisation fund: Parliament backs aid to Ireland and Spain

Over 2000 former construction workers in Spain and nearly 600 ex-employees of Irish glass company Waterford Crystal and its suppliers will receive a total of €11 million in aid from the EU Globalisation Adjustment Fund to help with training, business start-ups and job guidance under plans agreed by MEPs and the Council of Ministers. more »

Budget 2011 negotiations coming closer - MEPs decide on tactics

MEPs on Tuesday decided six top priorities and a number of additional key issues for the upcoming negotiations on the 2011 budget. more »

EU-China research cooperation in the spotlight at World Expo Shanghai

The EU-China Science and Technology Week starts today at the heart of World Expo Shanghai. more »

European Investment Bank and European Commission to explore EU climate finance initiative

European Climate Action Commissioner Connie Hedegaard and European Investment Bank President Philippe Maystadt agreed on Monday to explore a joint climate finance initiative for developing countries as part of the European Union commitment made at the UN climate conference in Copenhagen last December. more »

Interconnected energy grid - a first step towards an EU energy community

Sustainability, competitiveness and security of energy supply: the three pillars to the foundation of a new EU energy community. more »

European Commission set to help Palestinian economy with full opening of EU market

EU Trade Commissioner Karel De Gucht and Palestinian Minister of National Economy Hasan Abu-Libdeh today discussed measures to enhance EU-Palestinian bilateral trade relations and to facilitate trade of Palestinian products to EU markets. more »

Affordable hybrid cars, bus systems that get people out of cars, “intelligent” cargo and much more: Brussels showcase for smarter and greener transport innovation

Some of the most innovative and exciting transport research projects funded by the EU are being showcased at the Transport Research Arena (TRA) in Brussels this week. more »

Galileo: European alternative to GPS needs more funding

Nowadays we rely heavily on satellite positioning and navigation, but the only available technology is American. more »

Conference to present the future of transport networks in Europe

The European Commission will reveal how it aims to revamp its transport networks policy in response to the challenges of the 21st century at a conference dedicated to the Trans-European Transport Network (TEN-T) in Zaragoza on 8 and 9 June. more »