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Cisco Going Mobile, Acquiring Nokia?
Keruo writes "Sunday Business paper is reporting on its latest issue that Cisco Systems is considering of acquiring some large player in the mobile telephone field. According to a Reuters article the paper also suggests that the company is most likely Nokia. Neither of the companies have yet commented on the rumour." From the article: "Cisco's mainstay networking market was fast changing with the convergence of fixed-line and wireless networks, and Cisco needed a merger to acquire the technology to create intelligent wireless applications, which Finnish-based Nokia could provide."
Big, slowly dying behemoth of a company notices that its customers are gradually beginning to realize it's no longer really doing much of anything for them. Big, slowly dying behemoth immediately looks around for some other area it can branch out into so that it can run over there and escape before it pisses away all of its brand recognition in its entrenched area. Big, slowly dying behemoth immediately notices up-and-coming, vibrant technology company in an expanding area, and seeks to buy it, so that it can gradually ruin the vibrant company by marrying it to its entrenched, slowly dying management style.
Still though, some good might come of this. The first thing that comes to mind when I see a router company buying a cell phone company is "wimax routers". It would be the most logical thing to do once you own technology in both of those spaces. Of course, that would require imagination and vision. Does Cisco have those?
Actually, I'd believe more the other way around...
Nokia has this image as "king of the wireless" but in fact this has been slipping in the last couple of years as their primary product (handset) has been under threat of commoditisation by many other vendors primarily Far-Eastern.
To their credit Nokia saw this coming a long time ago and have strenuously tried to diversify into (a) server-side systems for mobile e.g. specialised mobile groupware and (b) network infrastructure with a security highlight such as dedicated (BSD) firewall boxes and VPN systems.
So maybe they do have something attractive for Cisco and might even view it as a merger.
Trivia: Nokia invented the first non-black Wellington Boot.
"Don't belong. Never join. Think for yourself. Peace." V.Stone, Microsoft Corporation
When cisco acquired linksys, build quality went down the pan. My pre-cicso equipment is solid stuff, built to last. The WRT54G I've got now feels flimsy and from what I've heard from other users is pretty prone to damage.
I'd rather this doesn't happen, as at the moment Nokia is an excellent company that doesn't need messing around with.
They'll just offer Cisco stock or something.
Cisco's float is virtually 100%, they don't have any treasury stock they can issue. That is, Cisco doesn't own any Cisco shares to play with. Unless they dilute the current shareholder's stock -- by creating new shares in the joint company to be given to Nokia shareholders -- Cisco doesn't have that many options other than an LBO.
Two wrongs don't make a right, but three lefts do.
I'm willing to bet that the 7920 wireless phones we use in our office are made by Nokia:
Check them out here.
Maybe Cisco wants to push their wireless VOIP to the next level. It makes sense. Imagine every Nokia product being 802.11 VOIP capable right out of the box.
-ted