Cisco's takeover plans for Norwegian video conferencing firm Tandberg are looking increasingly shaky - less than ten per cent of shareholders have so far voted in favour of the deal. Cisco has already extended the deadline for acceptance until 18 November in face of shareholders' lack of enthusiasm. If 90 per cent of …
£3bn is a lot of money
CISCO can develop and deploy new products for far less - however, it will take the best part of 18 months to get products to customers.
BT developed their own videoconference solutions at their R&D facility in Martlesham (with support of local electronics companies). If BT could do it, CISCO can definitely do it. Their brand will ensure large clients will be willing to trust the solutions they offer.
That said, the Tandberg systems I've used are very good and are available now.
Tandberg shareholders = Yahoo?
Tandberg shareholders might want to chat with a few Yahoo shareholdouts and see how quickly a fortune can dwindle. Continuing to 'go it alone' is a road to failure in the long term. Videoconferencing equipment is getting much less expensive and Cisco will gut margins if it decides to own the market.
If Tandberg decides to go it alone, I'd expect Cisco to buy Lifesize and then gut Tandberg in every deal available over the next 24 months.
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