The Tech Industry Steadily Invests, AOL CEO and Others are All Over this Bandwagon
There have been a great deal of significant investments going on in the tech industry these past couple of weeks, and AOL Chairman and CEO Tim Armstrong has hopped on the bandwagon. The Wall Street Journal reports that Armstrong increased his share of AOL to 4 percent by acquiring 477,000 shares at an average price of $20.97.
This sums up the investment at over $10 million, and successfully fulfilled Armstrong’s investment to give AOL investors a confidence boost. “Armstrong’s putting his money where his mouth is,” said David Joyce, analyst with Miller Tabak & Co.” Company shares rose 2.9 percent and closed up on Monday at $21.83.
Deflecting a bit of attention from the almost dimming star that is AOL, it’s not the only one who has been active in the financial scene. Zynga announced a new $250 funding round which will value the company between 7 and 9 billion dollars. Bloomberg however, expects Zynga’s value to reach $10 billion thanks to this latest round.
From social gaming to Twitter apps, holding company UberMedia, which seems to have a taste for Twitter-centric ventures, acquired UK Twitter app TweetDeck for $30 million.
AOL, Zynga Twitter and many others have benefited from the Silicon Valley spending spree we’ve seen lately, but this sort of activity can seriously backlash, as it has done before. John Furrier forecasts an upcoming second internet bubble, one that is much different than the dot com bubble. Not to mention, it’s going to pop “BIG.”
WSJ also has its take on this bubble, giving its analysis on the Silicon Valley companies standing in the middle of what’s due to become an immense pop.
“After Goldman Sachs hooked up some clients with Facebook shares, J.P. Morgan Chase is establishing its own fund to funnel investor money into the latest crop of hot Internet stocks. Besides Facebook, wish lists are topped by messaging-service Twitter, gaming company Zynga, daily deal purveyor Groupon and others. But this group isn’t created equal, and investors should be wary of companies racing to get through the IPO door quickly.”
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