Tech and Business Deals Heat Up as Companies Expand Online Presence

Strategic Insights -

In a flurry of deals, technology and business leaders announced partnerships and acquisitions to strengthen their online presence. Yahoo!, Sun Microsystems, and Marriott International are among the companies that have made significant moves to expand their e-commerce capabilities and offer internet-based services to customers. As a result, users can expect enhanced music and video experiences, improved online reservation systems, and standardized global communications.

Key Takeaways:

  • Yahoo! partnered with Beatnik Inc., EMusic.com, and Liquid Audio Inc. to launch Yahoo! Digital, a new music and video site that offers users the ability to watch and listen to music performances, preview, download, and purchase music, and remix music tracks online.
  • Sun Microsystems agreed to buy Forte Software Inc. for about $540 million in stock to acquire technology for doing business on the Internet. The acquisition will give Sun more products to offer companies that want to do business online.
  • Marriott International is using Forte software to build its online reservation system, a crucial component of its e-commerce strategy.
  • AT&T Corp. received a $400 million contract from AlliedSignal Inc. to provide worldwide telecommunications and data-networking services.
  • DaimlerChrysler AG plans to establish a headquarters for its Latin America automotive operations in Miami, further expanding its presence in the region.
  • Filene's Basement Corp. filed for federal bankruptcy protection due to low inventory caused by vendors who refused to deliver merchandise.
  • A California federal appeals court ordered reconsideration of a judge's restrictions against shipments by Microsoft Corp. of software containing Java programming language.

Statistics:

  • $540 million: The value of Sun Microsystems' acquisition of Forte Software Inc. in stock.
  • 0.3: The number of shares of Sun Microsystems' stock that will be exchanged for each Forte share.
  • $22.28: The value per share of Forte Software using the stock exchange ratio.
  • 31%: The percentage increase of Forte's stock value due to the acquisition.
  • 400 sites: The number of AlliedSignal's locations in 19 countries that will be affected by the AT&T Corp. contract.
  • 400 million: The value of the AT&T Corp. contract with AlliedSignal Inc.
  • 3 brands: The number of DaimlerChrysler AG brands that will be represented in the Miami headquarters.

Sources:

  • "Yahoo teams up to launch music, video site"

* Yahoo! Inc.

  • "Sun buying Forte for $540M"

* The Associated Press

  • "Marriott uses Forte software to build online reservations system"

* The Boston Globe

  • "AT&T to manage AlliedSignal's communications"

* The Associated Press

  • "DaimlerChrysler to establish Latin America headquarters in Miami"

* Reuters

  • "Filene's Basement files for bankruptcy"

* The Boston Globe

  • "Microsoft faces reconsideration of Java ruling"

* The Associated Press