In what it would be convenient to characterize as more evidence in favor
of the consolidation trend mentioned in the Wilmer-Cutler/Hale & Dorr
posting, this article discusses New York firms’ successful invasion of
Silicon Valley. They have opened new offices in the Valley and in San Francisco proper, and high-tech companies that previously used
Wilson-Sonsini, [the late] Venture Law Group, et. al, are now
turning to the likes of Skadden, Davis-Polk, and Simpson-Thacher.
While I would be as happy as the next New Yorker to gloat over the
belated recognition of the superiority of our heavy-weight firms, I actually
think the high-tech companies are simply being rational economic decision-makers. When
the deal on the table (ca. 1995—1999) is a simple IPO, go with
the local talent that has a proven record in that field. And, when
the deal on the table (ca. 2001—2004) is a $1.8-billion acquisition,
with complex antitrust, securities, tax, and financing issues built-in,
go with the one-stop-shop that provides that array of expertise.
