Tech Industry Enters 2004 with Mixed News

Strategic Insights -

Google's highly anticipated initial public offering was seen as a bellwether of the tech sector's strength, with analysts hoping for a recovery in the new year. Despite excessive hype surrounding the offering, Google is expected to take a more conventional route, raising as much as $4 billion and potentially valuing the company at up to $12 billion. Meanwhile, the Big Three automakers have retreated from their joint venture, Covisint, selling the business to FreeMarkets Inc. Intel has launched a $200 million venture fund to develop startups for the networked household, and Time Warner has sold its stake in a Chinese Internet service provider to Legend Group Ltd.

Key Takeaways:

  • Google's initial public offering is expected to raise up to $4 billion and value the company at up to $12 billion.
  • The Big Three automakers (DaimlerChrysler, Ford, and General Motors) have sold their joint venture, Covisint, to FreeMarkets Inc. for an undisclosed price.
  • Intel has launched a $200 million venture fund to develop startups for the networked household, with a focus on home networking.
  • Time Warner has sold its 49% stake in a Chinese Internet service provider, ChinaWWW, to Legend Group Ltd.
  • Novacea Inc. landed a $35 million third round of funding, led by Apax Partners.
  • PTC Therapeutics Inc. secured $35 million in funding, led by HBM Bioventures and Credit Suisse First Boston Private Equity.
  • Redback Networks Inc. received $30 million from Technology Crossover Ventures as it emerged from bankruptcy.

Statistics:

  • Google's initial public offering is expected to raise up to $4 billion.
  • The Big Three automakers' joint venture, Covisint, has been sold for an undisclosed price.
  • Intel's venture fund has a focus on devoting $200 million to developing startups for the networked household.
  • Time Warner's sale of ChinaWWW to Legend Group Ltd. was a 49% stake in the Chinese Internet service provider.
  • Novacea Inc.'s third round of funding was worth $35 million, led by Apax Partners.
  • PTC Therapeutics Inc.'s funding was led by HBM Bioventures and Credit Suisse First Boston Private Equity, with a total value of $35 million.
  • Redback Networks Inc. received $30 million from Technology Crossover Ventures, as it emerged from bankruptcy.

Sources:

  • "Google Said to Plan IPO Later This Year" by Paul Bonanos, The Deal
  • "Intel Creates Home Network Venture" by Paul Bonanos, The Deal
  • "Big Three Give Up on Covisint" by Paul Bonanos, The Deal
  • "Time Warner Exits China Internet Venture" by Paul Bonanos, The Deal
  • "Novacea Lands $35 Million" by Paul Bonanos, The Deal
  • "PTC Therapeutics Scores $35 Million" by Paul Bonanos, The Deal
  • "Redback Networks Gets $30 Million" by Paul Bonanos, The Deal