A drop in funding, such as from venture capital firms, caused the shutdowns of the likes of Walt Disney's entertainment site Go.com, e-retailer Send.com and health site SelfCare.com according to a report from Webmergers.com. Over $US1.5 billion had been invested in the companies that went under in January. Many of these companies are actively seeking to sell their assets, the report states.
The Internet sector saw more than two acquisitions for each funeral in January, according to Webmergers.com. Almost $US4 billion in merger-and-acquisition spending in January went to Internet infrastructure companies. That total includes Ariba's acquisition of Agile Software for $SU2.5 billion, according to the report.
Over $US600 million was spent to buy 60 Web-based companies in January, up from 57 acquisitions and $US3.7 billion during January 2000. The January 2001 figures show a decline in valuations and a falloff in the large deals that took place early last year before the Internet sector crisis, Webmergers said.