19 Feb New tech start-ups can rise from the economy's ashes
SAN FRANCISCO — It’s boom — and bust — for Silicon Valley companies these days. Literally.
Facing their worst economic climate since the dot-com bust in the early 2000s, high-tech companies are treating 2009 with dread — but also with a tinge of optimism if they act smartly.
Already, a few established companies with ample cash reserves are bolstering war chests that will help them snap up innovative start-ups. Cisco Systems has $29.5 billion in cash reserves and last week sold $4 billion more in bonds. Despite 5,000 layoffs, Microsoft plans to do some strategic hiring to fill new jobs supporting Internet search. And that well could involve acquisitions to pick up talented workers.
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