Hi,
My friend who works in a hedge fund told me that there is rumor in the market that some of the Cisco exec are in conversations with a potential buyer.
I have a good chunk of Cisco in my portfolio after last week dip I was planning to dump it unless that rumor is true. Have you heard something internally?
And if you trust the people on this site, then you know the the Splunk CEO is taking over from Chuck and will sell off parts of Cisco until it's gone.
They've been saying for many years that each layoff would cause everyone else to quit and the company has more employees than ever, so no, I don't trust them.
For all the speculation there hasn't been a hint of an explanation for why Cisco is significantly more valuable in parts. Cisco has already sold parts they couldn't execute on (all of Linksys, home cable routers, etc...) so I could see some smaller bits being split off to have a better chance in the market, but the core of the company is IOS-XE (which encompasses IOS,) IOS-XR, NX-OS and the associated hardware and services. Competitors likely won't want to support an entirely new OS, customers looking to starve out their competitors won't be able to manage the software maintenance and I don't see an entity entirely outside the networking market who would be able to radically improve the financial performance of any of those operating system ecosystems. Trying more fine grain sales with non-exclusive licensing opens up massive maintenance and legal problems.
IBM still does mainframes, HP still does printers, Oracle still does databases and there is a good chance Cisco will continue to do network plumbing parts well into the future.
So you just admitted you know it’s true by saying that
@1mow+1pHx2hak, how do you figure that?! I said IF I knew about it __and__ I __told__ you about it, then that would be insider trading. I said __nothing__ about whether or not you should buy or sell. I only said I wouldn't risk going to jail to help __you__ make a buck.
But, if you want market advice on Cisco, Yahoo Finance's CSCO stock tracking page says the Performance Outlook is going down for the Short term (2w-6w), Mid term (6w-9m), and the Long term (9m+). Enjoy the free stock advice. Now you know as much about Cisco's performance moving forward as I do. I learned about Cisco's acquisition of Splunk from the news just like everyone else and I'll probably hear about any acquisition of Cisco by an outside company from an internal email that goes out immediately after the press release goes public, just like everyone else.
And if you trust the people on this site, then you know the the Splunk CEO is taking over from Chuck and will sell off parts of Cisco until it's gone.
International companies like Samsung buying out would be next to impossible. if South Korea is invaded tomorrow cisco which is part of the national security establishment would become a huge hole to plug.
Here’s a good movie quote to help you…
Clyne: I think you're reaching.
Fran Madison: Our business requires us to make suppositions.
Clyne: My business requires us to prove them. Your technician's job is to find glitches, so, he sees glitches. Your job is to find the enemy, so, you see the enemy. Locals believe in spirits, so they see spirits. Everyone is biased in one way or another. So, my answer to you right now is that we lack data to support any theory.
@1heh+1pHx2hak So you just admitted you know it’s true by saying that
OP, if we had knowledge of acquisition conversations and told you about it so you could sell your shares, that would be insider trading.
I'm not going to jail so you can make a buck.
Cisco will be sold to a private equity firm that will fire 50%+ of the employees on day one with 4 weeks severance to reduce expenses and milk the cash flow to line their pockets
Gary Steele will do to Cisco what he did at splunk as our new ceo. Slice and dice and cut then sell off the parts.
@tlb+1pHx2hak Same value as when hedge funds by struggling companies. Buy it, fire everyone but the most essential stuff (support, dev only related to core tech) - approx. 40% - run a bare metal company till you get your money's worth for the next 5 odd years when most solutions will reach EOL/EOS. In the meanwhile, exploit the existing business to push cloud based solutions (in case of Google and AWS) to end customers via partners. No other legacy company has as far a reach as Cisco. Get the money, own the data (which is what Google's business really is) and after 5 years make a decision whether to keep it or dump it. Google did buy Motorola, a company, that once had 70000 employees. Did not work out for them then because Motorola did not have the reach that Cisco has - so they dumped Motorola.
The Deal could make sense, stock is lateral over the years, great customer base and strong financials.
4 reactions (+4/-0)
I'm not going to down vote you, but what exactly are the benefits to buying a company whose value is not increasing and paying a premium on $194B at this moment to get it?
The fact that AWS, Google, Amazon (and Elon) haven’t moved into switching, routing and packet movement tells you everything you need to know; it is a legacy business and is being commoditised on standards based protocols. They don’t want to operate in Cisco’s low value plumbing market - lots of complex work, difficult conversations and partners and limited senior value stakeholder visibility.
#1 - I’d suggest you pursue finding better friends
#2 - If there was any possible acquisition in play, it would be from Elon Musk
What data would Google get access to from the network they don’t already get from chrome? AWS will sell their switches to customers soon, why would they want Cisco’s?
The Deal could make sense, stock is lateral over the years, great customer base and strong financials.
Usual acquisition talk from those with zero idea how things work. If I had a nickle for every time over the years the peanut gallery tosses that one out there I would have an almost livable salary. There are a few things that could and should be spun off but that would require an ELT with intelligence (not to be confused with narcissist), and business acumen (not just the ability to check dei boxes). This rules out everyone in those positions at csco.
I have heard something similar too. This would also line up with the constant layoffs since November 2022. That's exactly what companies do when they line up the dying ecosystem for a sale. However, don't know how the sui-idal Splunk deal works in there.
I doubt this. Cisco does not have the valuation multipliers that cloud software companies like AWS and Google work on. If I had to pick a suiter I would go with Samsung.
I heard something similar. Apparently both Google and AWS are interested in getting Cisco more for their existing customer base for their core R&S and more importantly , associated customer data . Cisco still has about 50% of the SP market snd 65% of Enterprise. They want that for their expansion strategy , strip off all other nonsensical BUs, fire most of the fatted drones and then implement their cloud based security and post quantum solutions which Google have already rolled out in Chrome and AWS in a pilot project in Singapore. AWS also has physical wireless solutions . Not sure about the truth of the rumour though.