[yummyfajitas]

All-stock deals are usually very fishy because it generally illustrates that the buyer, quite simply, does not value their stock that highly (and values the seller's stock way more - so why are they selling?).

An all-stock deal is basically a merger. The seller doesn't necessarily value the buyer's stock way more, they might value the combined entity more than they value the sum of the parts. "Synergy" is the buzzword of the day.

For example, the merger of Confinity and X.com (i.e., paypal) was certainly worth more than either of the individual companies.

[confluence]

Perhaps. One note Confinity invented PayPal not X.com.

[wamatt]

Confinity invented the name PayPal, not the product PayPal as we know it today.