Today: Yahoo picks up an Israeli video startup, Salesforce agrees to buy Palo Alto big-data startup RelateIQ for $390 million, and Microsoft scoops up a San Jose company. Also: Gilead faces more pressure on Sovaldi pricing.
The Lead: Yahoo, Salesforce and Microsoft cap week with acquisitions
Silicon Valley's market for acquisitions heated up again Friday, with Yahoo finally making its anticipated video purchase, Salesforce continuing to add to its offerings and Microsoft picking up a San Jose company.
Yahoo announced after the end of trading Friday that it had agreed to purchase Israeli online-video startup RayV for an undisclosed amount. The Wall Street Journal reported earlier this summer that Yahoo was in talks with the company, one in a series of rumored video targets that included NDN, DailyMotion, Hulu and others as CEO Marissa Mayer looks to develop a stable of video content that includes big names like Katie Couric and shows such as "Community."
RayV brings nearly a decade of experience in digital video delivery to Yahoo, with the company's suite of software offering the infrastructure that Yahoo believes it needs to become a premier video-content provider.
"At Yahoo, we are focused on building a video offering that delivers best-in-class quality and content, and can be streamed on-demand and live, on all platforms," Yahoo executive P.P.S. Narayan said in a blog post. "The RayV team shares our passion for innovation and commitment to build a video infrastructure to deliver the ultimate video experience to our users."
Salesforce continued a pattern of big summer acquisitions that expands its offerings for enterprise customers, agreeing to purchase Palo Alto big-data startup RelateIQ for a total of $390 million in stock plus potential future incentives to employees. After Oracle jumped headfirst into cloud software with a series of big-money acquisitions, Salesforce has responded with the June 2012 purchase of Buddy Media, the June 2013 purchase of ExactTarget and now the purchase of RelateIQ, which uses machine learning and data science to discover inefficiencies in business processes and suggest new tactics.
"Looking ahead, Salesforce.com's acquisition of RelateIQ will extend the value of Salesforce.com's #1 CRM apps and platform with a new level of intelligence across sales, service, and marketing," Steve Loughlin, RelateIQ's CEO and co-founder, wrote in a blog post.
Microsoft isn't resting on its laurels as Oracle and Salesforce beef up their enterprise-cloud offerings: The Washington tech giant broke out its checkbook for a Silicon Valley company of its own Friday, buying San Jose-based InMage. The deal, which did not come with a price tag, gives Microsoft technology that helps customers manage data on hybrid public-private cloud setups, which many experts believe will be the most popular option for enterprise tech setups.
Yahoo gained 1.4 percent to $35.43 in regular trading Friday, and didn't immediately move higher in after-hours trading following its announcement of the RayV deal. Salesforce dropped 0.2 percent to $54.21 and Microsoft moved 1 percent higher to $42.09.
SV150 market report: Wall Street gains as Gilead faces more pressure
Wall Street managed slight gains to close out the week Friday, with technology stocks leading the way even as Silicon Valley's largest biotechnology company faced pressure on the price of its breakthrough hepatitis C drug.
Gilead Sciences is facing pressure from U.S. lawmakers and abroad on the pricing of Sovaldi, the most effective cure for hep C thus far approved for use. The Foster City company charges up to $1,000 a pill for the medicine, putting the maximum total cost for a full treatment at $84,000, which has led to outcry from some corners and record revenues for Gilead. In the latest round of battles, more than a dozen European nations are reportedly banding together to negotiate a lower price for the drug, and U.S. senators requested information about the $11 billion acquisition that brought the drug to Gilead. Gilead stock hit yet another all-time high in Friday trading, but eventually closed with a 0.2 percent decline at $88.73.
Apple rose 0.2 percent to $95.22 while receiving another in a series of price target upgrades from analysts, but the Cupertino company is facing accusations from China that its iPhone tracking capability could be a danger to the communist country's state secrets, according to a Wall Street Journal report. Google jumped 1.1 percent to $586.65 while continuing to struggle with "the right to be forgotten" court ruling, and Facebook gained 2.3 percent to $66.34 as a Dutch nonprofit suggested people quit the social network to gauge their happiness. Netflix gained 0.3 percent to $439.96 as CEO Reed Hastings reiterated that the service is not interested in streaming live sports, and Tesla Motors fell 0.6 percent to $218.13 as an alleged car thief became the first to die in a Model S crash.
Up: Ruckus, Zynga, eBay, Facebook, AMD, Yahoo, NetApp, Twitter, SanDisk, Google, SunPower, Adobe.
Down: GoPro, VMware, Symantec, Tesla, Juniper, Oracle, Yelp
The SV150 index of Silicon Valley's largest tech companies: Up 6.03, or 0.4 percent, to 1,522.25
The tech-heavy Nasdaq composite index: Up 19.29, or 0.44 percent, to 4,415.49
The blue chip Dow Jones industrial average: Up 28.74, or 0.17 percent, to 16,943.81
And the widely watched Standard & Poor's 500 index: Up 2.83, or 0.14 percent, to 1,967.51