SV150: Valley's public companies do well, but there are fewer of them

By Chris O'Brien and Jack Davis
San Jose Mercury News

The rosy numbers posted by the SV150 last year weren't enough to reverse one stark trend: The number of publicly traded companies in Silicon Valley continues to shrink.

Revenues for the SV150 rose, as did profits. Jobs posted their biggest post-bubble gains. Tech stocks' prices climbed.

But the valley lost 28 publicly traded companies - including 13 that were on last year's SV150 list. That was the sixth straight year of decline, leaving 280 public companies, down from a bubble-induced high of 417 in 2000. Already in 2007, three companies on the SV150 list have announced they are being sold.

Economists and forecasters seemed in general agreement that there's no need to hit the panic button - yet.

The vast majority of the companies - 25 - vanished through acquisitions. The difference from previous eras is that they're not being replaced as quickly by new companies going public. Instead, companies are increasingly opting to sell themselves.

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