Forbes.com: Desperation Dance

Forbes.com: Desperation Dance "Consolidation is the buzzword in software, but many companies are hearing a more bitter one:liquidation
Roger Siboni, chairman of software maker Epiphany, got an unexpected offer recently. The chief executive of a small rival was willing, even eager, to sell his firm to Epiphany--for a penny. The hurtful part:Siboni declined.
The struggles of the software industry in Silicon Valley have gone from bad to worse. Executives and their backers are taking desperate measures to sell, but often buyers aren't interested, no matter how low the price. "There's this myth that Silicon Valley needs consolidation," Siboni says, "but instead a whole host of companies will just fade away."

(Registration annoyingly required; thanks to Richard Eckel for the reference.)