tomtunguz.com – In 2015, startups benefitted from a vibrant fund raising market. In 2016, I believe they will enjoy a very active acquisition environment. The roughly 60 or so publicly traded software companies hold more than $380B in cash and short term investments on their balance sheets. Though Microsoft, Google, Cisco and Oracle possess 75% of that cash, 14 other companies have cash reserves of greater than $500M.
If we examine the M&A; activity measured by number of acquisitions announced through November 28, 2015 across the largest 18 businesses, we can see Google and Microsoft have become increasingly acquisitive over the past few years, with Microsoft setting nearly doubling the number of acquisitions since Satya Nadella took the helm as CEO.
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