Looking back at the history of high technology, there are countless examples of hyper-growth companies that eventually faded into nothingness. Examples include WordPerfect, Wang, DEC and on and on.
Yes, it's life in the tech fast lane.
And, this week we got some more road kill: Silicon Graphics (SGI) sold out to Rackable Systems (NASDAQ: RACK) for a measly $25 million.
Founded in 1982, SGI quickly found its growth groove. Then again, the company's mastermind was James Clark (who eventually went on to create companies like Netscape).
RackableSystems posts
FeedSilicon Graphics dies . . . finally
This week's rumor round-up: Will Amazon overpay for Netflix?
Netflix Inc (NASDAQ: NFLX)Amazing. Amazon.com Inc (NASDAQ: AMZN), that big online retailer, sees the flix for the net. The shares keep rising for the online DVD rental company-up about 15%, highest since January-- even if their discs do come a little scratched. More than that though is while new subscribers are coming on; it's not exactly going gangbusters. Still, 6.8M is a whole lot of subscribers. Will Amazon, or someone else, overpay?
Rackable Systems Inc (NASDAQ: RACK)
Which came first: The ongoing takeover rumors or the higher stock price? Or was it that Dell Inc (NASDAQ: DELL) is said to be after Rackable, a provider of servers and storage products for high density data center deployments. Rack it up.
Feldman Mall Properties Inc (NYSE: FMP)
Word is that this real estate investment trust will look for a sale, combo or merger. They said the venerable firm of Friedman, Billings, Ramsey & Co. will help them "explore strategic alternatives." Then the stock went up.
STILL FLYING AROUND
Trump Entertainment Resorts Inc (NASDAQ: TRMP)
Dennis Gomes, whose name surfaced in March, is a one time gaming exec and regulator. He's signed a confidentiality agreement to have a look see at the firm's Atlantic City casinos. Separately, Las Vegas' Boyd Gaming Corporation (NYSE: BYD) has also been mentioned as a possible contender.
YRC Worldwide Inc (NASDAQ: YRCW)
The CEO of this Kansas-based transportation service provider has been quoted as saying that a takeover is possible. An LBO is likely. This week the shares have actively been trading up.
Dollar Tree Stores Inc (NASDAQ: DLTR)
Imagine a dollar tree where the stock keeps going up, up, up. Well, here it is, once again, a subject of takeover talk.
BUZZ
United States Steel Corporation (NYSE: X): Russia's Severstal may be prowling around...Plains Exploration & Production Company (NYSE: PXP): Takeover candidate's stock is sharply higher... Micron Technology Inc (NYSE: MU): Blackstone has interest...Ameristar Casinos Inc (NASDAQ: ASCA): A hot stock and takeover rumors abound...Nvidia Corporation (NASDAQ: NVDA): Remains an LBO candidate...The First Marblehead Corporation (NYSE: FMD): The student loan business is booming and earnings growth is strong, but who would buy it?...Marriott International Inc (NYSE: MAR): A target? But where's the movement?...Oakley Inc (NYSE: OO) as a target has been around and around, and now some say it will be bought by Luxottica Group (NYSE: LUX).
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