The Eagle Blog

May 2006 Industry News

Each month I produce a synopsis of the stories that caught my eye during the previous month. The full version of the May Industry news will be available on our website tomorrow. The following is a synopsis of the synopsis (if that makes sense).

The news in the technology world for May is probably very similar to the conditions that most of us seem to be encountering in the “real world”. Mixed news and unpredictable markets with lots of good potential but some also really bad stuff! This seems consistent with most people in my circle lately unless they are in the energy sector, the defense sector or financial services!

This month we hear there is optimism for job growth and yet we also hear about significant layoffs from Seagate (6,000 layoffs), AOL (1,300 layoffs) and Borland (300 layoffs). US economic growth is strong, spending in IT is up and we also hear that Silicon Graphics is filing for Chapter 11 bankruptcy protection, and Canadian CEO confidence is down significantly. It appears that companies with significant Indian operations are posting impressive revenue growth … not sure what that means for Canadian and US companies.

On the M&A front Toronto’s Hummingbird was purchased by holding company Symphony Technology Group for $465 million, EMC bought Kashya for $153 million, Qwest bought OnFiber for $107 million. In our space we saw CNC Global get snatched up by Vedior and IBM made a little purchase.

It was interesting to see that Google accounted for more than half of the searches on the internet in April, as opposed to MSN’s 11%. Maybe that’s why Microsoft announced its huge investment in the MSN division for the next year!

2 thoughts on “May 2006 Industry News

  1. The Hummingbird acquisition is far from a done deal. The conference call about the announcement was about the worst conference call I’ve ever heard in my life.

    The management team was extremely ill prepared for the call, and Sorkin is about the worst public speaker ever. The team didn’t know basic facts about the transaction.

    Furthermore, they did no shopping of this deal. They simply accepted the first deal that came, and attempted to contact no one else, but did answer the phone from two other non-serious bidders.

    I am glad I don’t own any Hummingbird stock with these yahoos running things.

  2. The Hummingbird acquisition is far from a done deal. The conference call about the announcement was about the worst conference call I’ve ever heard in my life.

    The management team was extremely ill prepared for the call, and Sorkin is about the worst public speaker ever. The team didn’t know basic facts about the transaction.

    Furthermore, they did no shopping of this deal. They simply accepted the first deal that came, and attempted to contact no one else, but did answer the phone from two other non-serious bidders.

    I am glad I don’t own any Hummingbird stock with these yahoos running things.

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