Rather than take the money and run or watch it burn a hole in their pockets, a number of Internet companies have put their cash to work to build up their businesses. Investors' first reaction was to sell stock of the acquirers and buy the acquired.

TheStreet.com Internet Sector

index was up 1.03, or 0.1% at 1141.29. The sector -- and our own

James Cramer -- were focused on three deals.

The largest was the $4.2 billion in stock that

Kana Communications

(KANA)

agreed to pay for

Silknet Software

(SILK) - Get Report

. Kana, which provides online customer-service software, was down 20 7/8, or 8%, at 238 in early trading, while Silknet, which supplies customer-service software to businesses, was up 38 1/2, or 28%, at 177. Kana will pay 0.83 share for each share of Silknet.

Also,

Akamai Technologies

(AKAM) - Get Report

, which provides Web content delivery, was down 15 5/16, or 6.5%, at 219 11/16 after it entered a $2.8 billion stock deal to acquire streaming media company

InterVU

(ITVU)

. The deal calls for Akamai to issue 9.3 million shares for all outstanding shares of InterVU. InterVU was up 4 9/16, or 3.9%, at 121 9/16.

Finally,

Visual Networks

(VNWK)

, which makes systems that manage Internet traffic flow, said it would buy privately held

Avesta Tech

in a deal valued at $415 million. Visual Networks was down 9 7/8, or 16%, at 53 1/2.

Elsewhere, a couple of Net bellwethers were also in the news.

Amazon.com

(AMZN) - Get Report

was down 2, or 3%, at 76 9/16 after the company

said that it would sell up to 600 million of euro-denominated convertible subordinated notes that will be due in 2010.

America Online

(AOL)

was down 15/16, or 1.6%, at 56 7/8.

AOL Europe

, a joint venture between America Online and

Bertelsmann

, made a pact with

Ericsson

(ERICY)

and

Nokia

(NOK) - Get Report

to test and develop Internet-compatible mobile services.

AOL Europe also said it would test its WAP gateway for Web-compatible cell phones and SMS messaging and Mail by Phone services with RTS Wireless.

E*Trade

(EGRP)

was up 1 1/8, or 5%, at 22 15/16. The online trading outfit said that it would launch

E*Trade Korea

, a joint venture of E*Trade,

Softbank

and

LG Investment & Securities

. E*Trade Korea is the seventh E*Trade-branded site outside the U.S.

In analysts' action,

Banc of America

raised its price target on

Ariba

(ARBA)

to 250 from 225. Ariba, which makes software that lets businesses buy supplies over the Internet, was up 10 13/16, or 6%, at 196 1/4 on the news. Banc of America has not done underwriting for Ariba.