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         <Name>Not Just Fun And Games Anymore</Name>
         <Summary>Online Gaming Will Be A Powerful Driver Of M&amp;A</Summary>
         <Description>&lt;p&gt;&lt;strong&gt;by Don More&lt;/strong&gt; &lt;/p&gt;&lt;p&gt;with&amp;nbsp;Matthew Cohen and Francesca Bartolomey&lt;/p&gt;&lt;p /&gt;&lt;p&gt;&lt;em&gt;&lt;/em&gt;&lt;/p&gt;&lt;p&gt;&lt;em&gt;&amp;ldquo;Flank left! Flank left!&amp;rdquo; &lt;br /&gt;&amp;ldquo;Enemy on your right!&amp;rdquo;&lt;/em&gt;&lt;/p&gt;&lt;p&gt;These are the outbursts typical of a gamer in &lt;a title="Counter-Strike" href="http://www.steamgames.com/v/index.php?area=app&amp;AppId=240" target="_blank"&gt;Counter-Strike&lt;/a&gt;; however, gaming has gone far beyond the &amp;lsquo;traditional&amp;rsquo; youngish, mostly male audience to include an amazing &lt;a title="72% of Americans are gamers" href="http://www.webpronews.com/topnews/2008/04/02/42-of-americans-play-games-online" target="_blank"&gt;72% of the entire U.S. population, up from 64%&lt;/a&gt; in 2006. Make no mistake about it &amp;ndash; it&amp;rsquo;s not your parents&amp;rsquo; Atari. Leaps in technology, bandwidth, and processing power have extended gaming to new uses, audiences, and age groups. Applications experiencing great growth include education, training, and rehabilitation. Gamers are a critical market that advertisers cannot afford to ignore. NPD Group reports that in 2007, the gaming sector alone generated about $19 billion in revenues in the U.S. representing a &lt;a title="Games sales drove $18.8 billion in 2007" href="http://www.npd.com/press/releases/press_080131b.html" target="_blank"&gt;40% increase&lt;/a&gt; from sales in 2006. &lt;/p&gt;&lt;p&gt;Participation in online gaming has grown to &lt;a title="42% of Americans play games online" href="http://www.webpronews.com/topnews/2008/04/02/42-of-americans-play-games-online" target="_blank"&gt;42% of the population&lt;/a&gt;.&amp;nbsp; Of all online gamers in 2007, 90% used a PC (or laptop) to &lt;a title="Most online gamers use computer to access online games" href="http://www.shacknews.com/onearticle.x/52025" target="_blank"&gt;enter the virtual gaming network&lt;/a&gt;, while 19% reported using their console&amp;nbsp; (such as Xbox 360 and PlayStation 3).* And not only are more users than ever before playing games online, but they are also becoming more avid gamers. NPD Group reports that 13% of online gamers spend 20 hours or more per week playing games online. Expect web-enabled handhelds of the Nintendo DS or PSP variety to further increase market penetration and engagement in the medium.&lt;/p&gt;&lt;p&gt;In addition to entertainment, games are increasingly a component of education. For example, LeapFrog&amp;rsquo;s products (as well as similar lines by Hasbro and Mattel) are designed to encourage development and basic learning in children as young as just a few months old. The benefits of games that are introduced into a learning environment are seen in older students as well. &lt;a title="Games as student aids" href="http://www.thejournal.com/articles/22786" target="_blank"&gt;Research&lt;/a&gt;&amp;nbsp;conducted on the effect of using games to aid students in learning math showed that students using the games earned an average of 4.3 more points on a math test than students in a control group. &lt;/p&gt;&lt;p&gt;Another growth area in gaming leverages technological advances that enable physical involvement of the user in video games, a phenomenon colloquially dubbed &amp;ldquo;&lt;a href="http://abcnews.go.com/Technology/GadgetGuide/wireStory?id=4262970" target="_blank"&gt;wiihabilitation&lt;/a&gt;.&amp;rdquo;&amp;nbsp;War veterans, the elderly, and other patients recovering from injury are using the Nintendo Wii in order to enhance (and reduce the burden of) rehabilitation therapy. &lt;/p&gt;&lt;p&gt;Employers are seeing the benefit of games in workplace training as well. While many productive hours have probably been lost to the likes of Tetris and Solitaire over the years, more companies utilize online games to &lt;a title="Companies use games for workplace training" href="http://www.businessweek.com/magazine/content/06_13/b3977062.htm" target="_blank"&gt;train employees&lt;/a&gt; better.&amp;nbsp; &lt;/p&gt;&lt;p&gt;M&amp;amp;A activity reflects the market opportunity. Hot on the heels of last year&amp;rsquo;s $18.9 billion deal combining Vivendi and Activision, video gaming titan Electronic Arts made a &lt;a title="EA makes bid for Take-Two Interactive" href="http://www.eatake2.com/pressreleases.action" target="_blank"&gt;$2 billion bid&lt;/a&gt; for rival Take-Two Interactive (the creator of the hugely successful Grand Theft Auto series) earlier this year. Additional gaming deals announced this year are shown below. Expect more activity to follow.&lt;/p&gt;&lt;p&gt;&lt;sub&gt;*The overlapping 9% consists of respondents who access online games via both their computer and console.&lt;/sub&gt;&lt;/p&gt;</Description>
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         <Description>&lt;p&gt;&lt;strong&gt;by Don More and Lorie Roscitt&lt;/strong&gt;&lt;/p&gt;&lt;p&gt;While the recent softness in technology M&amp;amp;A has been well documented, certain companies &amp;ndash; which we call the Tech Titans &amp;ndash; evidently did not get the memo. These companies (Microsoft, Google, IBM, Cisco, Oracle, and HP &amp;ndash; all with market capitalizations in excess of $100 billion and operations that cross multiple technology sectors) have been prolific buyers during the past 12 months.&lt;/p&gt;&lt;p&gt;Since August 1, 2007, (which roughly coincides with the start of the current credit &amp;lsquo;crisis&amp;rsquo;), while the NASDAQ declined 8.7%, the Tech Titans purchased over 60 technology companies, for combined disclosed enterprise value of $30 billion. (Many deal values are undisclosed.) As a group, they paid a healthy median trailing revenue multiple of 4.8x and a trailing EBITDA multiple of 18.5x.&lt;/p&gt;&lt;p&gt;As shown in the chart below prepared by Updata Advisors, acquired companies operate across tech sectors highlighting that the Tech Titans are exploiting market weakness to fill out product portfolios, augment growth, and remain competitive.&lt;/p&gt;&lt;p align="center"&gt;&lt;img hspace="0" src="docs/chart1_PNG.png" align="baseline" border="0" /&gt;&lt;/p&gt;&lt;p&gt;Eight of the acquired companies purchased in the past year by the Tech Titans were publicly-held companies whose shareholders were paid a median 1-day premium of 28% and a median 30-day premium of 44%.&amp;nbsp; &lt;/p&gt;&lt;p&gt;Overall, at least 50 public IT companies, representing $70 billion of market capitalization, were acquired over the past 12 months. While this marks a decline over the prior year (August 2006-July 2007), which saw $99 billion of public take-outs due to private equity activity, strategic buyer volume actually rose 35% since the market downturn (see chart below).&lt;/p&gt;&lt;p align="center"&gt;&lt;img alt="Financial Buyers Have Diminished Significantly As Acquirors Of Publicly-Held IT Companies" hspace="0" src="docs/chart2.PNG" align="baseline" border="0" /&gt;&lt;/p&gt;&lt;p&gt;Tech Titan acquisitiveness, together with a big increase in public-public M&amp;amp;A activity, highlight ongoing strength in tech M&amp;amp;A and a realization that the market is getting more competitive and that the tech market is viewed by buyers as &amp;lsquo;cheap&amp;rsquo; by historical standards &amp;ndash; perhaps the sign of a nearing bottom.&lt;/p&gt;</Description>
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         <Name>Mobile Wars Part I: Symbian And Android Battle For Mobile Device Supremacy</Name>
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         <Description>&lt;p&gt;&lt;strong&gt;by Jin Ke&lt;/strong&gt;&lt;/p&gt;&lt;p&gt;with Don More&lt;/p&gt;&lt;p&gt;Move aside Batman and Ironman. For world domination drama, the real action this summer is off-screen and on our phones, er, mobile devices. Big handset players, notably Research in Motion and Apple, are leveraging dominance in their territories to attack each other&amp;rsquo;s turf &amp;ndash; iPhone&amp;rsquo;s attempt to dethrone BlackBerry&amp;rsquo;s enterprise supremacy is the most notable example.&amp;nbsp;&amp;nbsp; &lt;/p&gt;&lt;p&gt;Meanwhile on the OS side, on June 24, 2008 &lt;a title="Nokia acquires Symbian" href="http://www.nokia.com/A4136001?newsid=1230415" target="_blank"&gt;Nokia acquired the remaining 52% of Symbian&lt;/a&gt;&amp;nbsp;it didn&amp;rsquo;t own and opened Symbian&amp;rsquo;s mobile OS platform to the public to compete with Google&amp;rsquo;s nascent-but-highly-touted Android mobile OS. Earlier this year, the Finnish company also &lt;a title="Nokia acquires TrollTech" href="http://www.nokia.com/A4813580" target="_blank"&gt;bought cross-platform solution vendor TrollTech&lt;/a&gt;&amp;nbsp;for $153 million, and in December 2007, mobile-PC interoperating player &lt;a title="Nokia acquires Avvenu" href="http://www.nokia.com/A4136001?newsid=1172938" target="_blank"&gt;Avvenu&lt;/a&gt;.&amp;nbsp; &lt;/p&gt;&lt;p&gt;Google, lacking experience and handsets to push its platform, will be hard-pressed to take major share from the leading global platforms (see chart below) but it will be interesting to see their next move. Given the importance of mobile to Google&amp;rsquo;s ad-driven growth strategy, plus their cash and pluckiness, they are likely to do something big to follow their acquisitions of mobile social networking players, &lt;a title="Google acquires Jaiku" href="http://www.techcrunch.com/2007/10/09/google-buys-social-mobile-startup-jaiku/" target="_blank"&gt;Jaiku&lt;/a&gt; and &lt;a title="Google acquires Zingku" href="http://www.pcworld.com/article/137853/google_buys_mobile_social_network_zingku.html" target="_blank"&gt;Zingku&lt;/a&gt;, last year.&lt;/p&gt;&lt;p align="center"&gt;&lt;img hspace="0" src="docs/symbian.PNG" align="baseline" border="0" /&gt;&lt;/p&gt;&lt;p&gt;While hardware device vendors are kings of the mobile value chain jungle because they own the user channel, it is software that will drive future market success. iPhone&amp;rsquo;s blockbuster sales highlight the importance of software-first (rather than feature-first) mobile devices. RIM has taken note, launching a $150 million fund last May to invest in applications and services for its BlackBerry device and other mobile platforms; it&amp;rsquo;s called &lt;a title="BlackBerry Partners Fund" href="http://www.blackberrypartnersfund.com/pressrelease.html" target="_blank"&gt;BlackBerry Partners Fund&lt;/a&gt;.&amp;nbsp; Kleiner Perkins similarly launched a $100 million fund in March for iPhone application vendors called &lt;a title="iFund" href="http://www.kpcb.com/initiatives/ifund/index.html" target="_blank"&gt;iFund&lt;/a&gt;.&amp;nbsp; &lt;/p&gt;&lt;p&gt;Given software&amp;rsquo;s criticality to the mobile device wars, Microsoft is a looming threat, with its ubiquitous enterprise application portfolio and widely installed mobile OS. Showing it means business, in the last 12 months Microsoft spent millions snapping-up mobile technology companies. &lt;/p&gt;&lt;p&gt;Recent Microsoft acquisitions in the mobile space:&lt;/p&gt;&lt;ul&gt;&lt;li&gt;&lt;a title="Microsoft acquires Mobicomp" href="http://www.microsoft.com/presspass/press/2008/jun08/06-26MobilePR.mspx" target="_blank"&gt;Mobicomp&lt;/a&gt;: Data security &amp;amp; social network &lt;/li&gt;&lt;li&gt;&lt;a title="Microsoft acquires Danger" href="http://www.microsoft.com/presspass/press/2008/feb08/02-11acquisition.mspx" target="_blank"&gt;Danger&lt;/a&gt;: Mobile social network &lt;/li&gt;&lt;li&gt;&lt;a title="Microsoft acquires Musiwave" href="http://www.microsoft.com/presspass/press/2007/nov07/11-12ProjectTunesPR.mspx" target="_blank"&gt;Musiwave&lt;/a&gt;: Mobile music content &lt;/li&gt;&lt;li&gt;&lt;a title="Microsoft acquires ScreenTonic" href="http://www.microsoft.com/presspass/press/2007/may07/05-03ScreenTonicPR.mspx" target="_blank"&gt;ScreenTonic&lt;/a&gt;: Mobile ads &lt;/li&gt;&lt;li&gt;&lt;a title="Microsoft acquires Tellme Networks" href="http://www.microsoft.com/presspass/press/2007/mar07/03-14powerofspeechpr.mspx" target="_blank"&gt;Tellme Networks&lt;/a&gt;: Mobile search &amp;amp; FMC&lt;/li&gt;&lt;/ul&gt;&lt;p&gt;Will Google be able to incorporate the mobile space into its search-advertising juggernaut? Will Microsoft be able to take its PC OS and apps success on the road? Who will win the battle for handset supremacy? Whatever the outcome, the mobile slugfest will help drive M&amp;amp;A and IT venture deal volumes in an otherwise slowing year. Stay tuned as the battle heats up after Labor Day.&lt;/p&gt;&lt;p&gt;&amp;nbsp;&lt;/p&gt;&lt;a href="http://technorati.com/claim/vtnhz5j6ry" rel="me"&gt;&lt;font color="#cccccc"&gt;Technorati Profile&lt;/font&gt;&lt;/a&gt;</Description>
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         <Summary>Part 2: Working With Gen Y</Summary>
         <Description>&lt;p&gt;In the past few years as Generation Y has been graduating from college and entering the workforce, employers aren&amp;rsquo;t really sure what to make of us. To them it seems that while we are reaping the benefits of a childhood crammed with lessons, practices, rehearsals, and tutors and are tech savvy beyond our years, we are stunted by a spoiled unwillingness to pay our dues at work. To introduce today&amp;rsquo;s employers to Generation Y, articles have proliferated on the web. National periodicals such as the &lt;a title="WSJ: The Most-Praised Generation Goes To Work" href="http://online.wsj.com/article_print/SB117702894815776259.html" target="_blank"&gt;Wall Street Journal&lt;/a&gt;,&amp;nbsp;the &lt;a title="NYT: Generation Me Vs. You Revisited" href="http://www.nytimes.com/2008/01/17/fashion/17narcissism.html?scp=5&amp;sq=generation%20y&amp;st=cse" target="_blank"&gt;New York Times&lt;/a&gt;,&amp;nbsp;and the &lt;a title="WP: Big Babies" href="http://www.washingtonpost.com/wp-dyn/content/article/2006/05/18/AR2006051801091.html" target="_blank"&gt;Washington Post&lt;/a&gt;&amp;nbsp; have all had something to say about Gen Y. The general consensus is that we&amp;rsquo;re a generation of status-seeking, label-conscious narcissists who&amp;rsquo;ll wither unless lavished with praise. I must say that to have such venerable sources as these devote so much text to us is plenty flattering. But even as our detractors (mostly cynical Gen Xers) deride the indulgent way we were brought up, by writing about us they acknowledge something crucial &amp;ndash; we matter. And of course, we revel in the attention.&amp;nbsp; &lt;/p&gt;&lt;p&gt;As we charge into the workplace in Boomer-comparable numbers, here are a couple of crucial Gen Y idiosyncrasies to consider:&lt;/p&gt;&lt;ul&gt;&lt;li&gt;&lt;strong&gt;Gen Y is in constant communication.&lt;/strong&gt; Our parents waited for days in line to get tickets to the Rolling Stones. We &lt;a title="iPhone 3G Lines Starting In New York City" href="http://www.appleinsider.com/articles/08/07/04/its_already_begun_iphone_3g_line_starting_in_new_york_city.html" target="_blank"&gt;waited for days&lt;/a&gt;&amp;nbsp;to get the latest iPhone. Whether it&amp;rsquo;s via Twitter, Facebook, or Loopt, we are always connected to our friends. And we talk. About everything. That&amp;rsquo;s right, even salary. It&amp;rsquo;s not uncommon for a circle of close friends to know how much each one makes, and I mean right down to the dollar. After all, we plaster our lives all over the Internet so why should we conceal potentially useful information like that from our friends? When it comes to job hunting, friends are our first source of information. By using our friends as a barometer, we can figure out what we&amp;rsquo;re worth and set expectations appropriately. If a job offer doesn&amp;rsquo;t meet expectations, many of us won&amp;rsquo;t hesitate to walk away. After all, Gen Y is known for having an exceptionally close relationship with their parents and so moving back in with mom and dad isn&amp;rsquo;t the end of the world for us. &lt;/li&gt;&lt;li&gt;&lt;strong&gt;Gen Y thrives in a flexible working environment.&lt;/strong&gt; We don&amp;rsquo;t want the Office Space life. We want to enjoy our jobs, but they&amp;rsquo;re not going to be the center of our worlds. Strict cubicle confinement is a surefire path to low morale and low productivity. You see, in college, laptops were standard. To get our work done, we weren&amp;rsquo;t restricted to the library or to the dorms. While previous generations may have hung out in coffee shops snapping their fingers to beat poetry, we&amp;rsquo;re there primarily to get work done. We&amp;rsquo;ve become accustomed to taking our information with us everywhere. As a result we are looking for flexibility in our job. If our job doesn&amp;rsquo;t demand our presence in the office every day, we&amp;rsquo;d like the opportunity to telecommute once in awhile. &lt;/li&gt;&lt;li&gt;&lt;strong&gt;Gen Y has honed the skill of multi-tasking into a fine art.&lt;/strong&gt; If there&amp;rsquo;s one Gen Y stereotype that continues to prove itself (if not quantitatively, at least anecdotally) it&amp;rsquo;s that we have a short attention span. At any given time, a typical Gen Yer is doing 20 things at once. Rarely will you look upon the computer screen of a Gen Yer and see just one or two applications open. It&amp;rsquo;s much more common to see two or more instant messaging apps (or, if the Gen Yer is particularly tech savvy, multiple IM apps consolidated into one via Pidgin or Adium), no fewer than 10 websites open (using tabbed browsing, of course) in Internet Explorer or Firefox (but probably Firefox), Excel, Word, and their corporate email all open at once. But although we&amp;rsquo;re bouncing from one item to the next and back again so quickly, we&amp;rsquo;re no less productive. As I&amp;rsquo;ve said, we&amp;rsquo;re used to having our information with us wherever we go and that includes our work information. While we don&amp;rsquo;t want to be confined to a cubicle for 8 hours straight, we also don&amp;rsquo;t really subscribe to the traditional workday mindset. If we&amp;rsquo;re playing around online at midnight or on the weekend and an idea involving a work project suddenly strikes us, we&amp;rsquo;ll open up a tab, log in remotely and get to work.&lt;/li&gt;&lt;li&gt;&lt;strong&gt;We set ambitious goals for ourselves.&lt;/strong&gt; We want to be successful in everything we do and we recognize the importance of education. Many Gen Yers were brought up believing that attending college was not optional, it was expected. We&amp;rsquo;ve been groomed to value education and continue to seek it out in the workplace. Companies that place emphasis on training programs and mentorship or that offer tuition reimbursement are very attractive to the Gen Y set. (Coldstone Creamery earns bonus points with its interactive, &lt;a title="BusinessWeek: On-the-job Video Gaming" href="http://www.businessweek.com/magazine/content/06_13/b3977062.htm" target="_blank"&gt;computer game-based training programs&lt;/a&gt;.) Additionally, we are not unwilling to start at the bottom, but everything we do in the meantime is in preparation for the next step. Gen Y doesn&amp;rsquo;t respond well to institutionalized rules governing advancement; if we master all the skills for a particular role in one year, we won&amp;rsquo;t stay in that role for two just because corporate policy demands it before allowing for promotion. &lt;/li&gt;&lt;/ul&gt;&lt;p&gt;Generation Y has benefited from growing up in an age of economic prosperity, an age where all of the world&amp;rsquo;s information is available instantly at the click of a button. We did not grow up fearing war or hunger or joblessness &amp;ndash; we&amp;rsquo;ve had it pretty good. And so it seems as though we are arrogant and spoiled and don&amp;rsquo;t want to pay our dues at work, but that isn&amp;rsquo;t the case. We know what it means to work hard and we are not afraid. We&amp;rsquo;ve had to work hard and differentiate ourselves in order to compete with unprecedented numbers of people to get accepted into college and then repeat that process to get our first jobs. Sure, we have our &lt;a title="ER Docs: Don't Text And Walk, Skate -- Or Cook" href="http://www.usatoday.com/tech/wireless/phones/2008-07-30-oblivious-texters-danger_N.htm?csp=34" target="_blank"&gt;quirks&lt;/a&gt;,&amp;nbsp;but we&amp;rsquo;re smart and hard-working and capable of &lt;a title="BusinessWeek's Top 25 Young Entrepreneurs" href="http://images.businessweek.com/ss/05/12/25entrepreneurs/index_01.htm" target="_blank"&gt;big things&lt;/a&gt;. &lt;/p&gt;</Description>
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                   <Title>IT For Generation 'Me'</Title>

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