In a sign that the Internet sector may be nearing the end of its brutal shakeout, the number of shutdowns and bankruptcies by dot-com companies in the first half of this year fell 73% from the same period last year, a new report from Webmergers.com shows.
At least 93 Internet companies closed their doors or filed for bankruptcy protection in the first six months of 2002, down from 345 such casualties during the same period last year, according to the San Francisco research firm that has been keeping a tally of shutdowns.
June, which had 13 shutdowns, marked the sixth consecutive month in which the number of shutdowns came in at less than 20. That's a considerable contrast from the 16-month period beginning the preceding January, when casualties averaged 44 a month.
Since January 2000, when the Internet froth was at its peak, at least 862 dot-com companies have failed, according to Webmergers.com data.
News source: InformationWeek - Dot-Com Shutdown Pace Slows
