Game Over in Download Valley?

The lucrative companies that make their profits from toolbars are hitting new obstacles that have led to mergers, splits and other survival strategies.

Freeware developers and distributors, which are among the most profitable and fastest growing companies in Israeli high-tech in recent years, have lately run into turbulence. The industry, dubbed "Download Valley" and comprised of companies like Babylon and Conduit, is still generating revenues like never before but now needs to contend with a new set of thorny strategic...