Recall Dotcom Bubble!
Google purchase of YouTube for US$1.65 billion in 2006,
eBay's purchase of Skype for US$2.6 billion in September 2005 (both mostly in swapping shares),
Intermix Media (owner of MySpace) by News Corporation for US$580 million in 2005,
On-line radio station Last.fm was bought for US$280 million by CBS Interactive.
The new boom is not being fulled by IPOs, the money financing all acquisitions come directly from cash reserves of established companies with long term interest on the purchased businesses.
The reason why the earlier dot-com bubble is called so is because it wiped out $5 trillion in market value of technology companies from March 2000 to October 2002
The main technology stock exchange, the Nasdaq rose just 2.5% in 2005, 8% in 2006 and so far 17% in 2007, this hardly constitutes a speculative bubble.
During the Dot-com bubble
Nasdaq rose 41% in 1995
22% in 1996
23% in 1997
38% in 1998
84% in 1999 and
22% in the first 3 months of 2000.
The bubble finally burst on March 10, 2000.
source : wikipedia