If things are feeling slow in the tech deal space, it's not in your head.
Deal volume is stagnant and deal values are way down from 2010 and 2011.
According to a new survey of Silicon Valley dealmakers by 451 Research and Morrison & Foerster, a prominent San Francisco-based law firm, there are two primary reasons:
- Economic uncertainty, including prospects for US growth, Europe's fiscal crisis, and America's "fiscal cliff"
- High prices demanded by acquisition targets
So this year, big, splashy deals like Facebook's $715 million purchase of Instagram have been the exception, not the rule.
Even with SoftBank's $20 billion acquisition of a majority stake in Sprint, which will boost fourth-quarter deal numbers, it seems likely that M&A activity in 2012 will finish out the year at levels close to 2009.
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