Google, Facebook lead Bay Area corporate buying binge

The Bay Area is in the midst of a corporate feeding frenzy. Since 2010, Google has gobbled up nearly 200 businesses, a staggering buying binge averaging more than one deal every week. Other companies have been on the prowl, too.

Last year, Facebook, Twitter and Cisco Systems -- along with Google -- were among the nation's top five purchasers of privately held tech firms, typically small startups that are the most common tech acquisition target. Overall, Bay Area businesses did 329 such deals last year, far more than any other region, according to research firm PrivCo. Many of these investments signal a fundamental change in Silicon Valley's culture of innovation. Facing intense competition, companies here frequently fear that if they take time to develop a product, a rival will beat them to the market. So instead of laboring to create something in their labs -- long the tradition -- they often simply buy another business that's already started or completed the work.