About CPQ's Telecommunication Biz
Here is a very positive article about CPQ's Telecommunication Biz
Fort Worth Star-Telegram
Updated: Monday, Oct. 11, 1999 at 22:11 CDT
Compaq to boost employees to 500 in North Texas
By D'Ann Mabray Shippy
Star-Telegram Staff Writer
star-telegram.com
From the article:
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"This pulls together all the pieces," Hodel said. "Those companies both brought a lot of key technology and expertise to bear that has now been consolidated."
Aberdeen Group, a computer and communications research and consulting organization in Boston, touts Compaq as one of the most important solutions providers in the overall communications market and says it counts as close partners all of the leading telecommunications network equipment providers.
Compaq estimated that telecommunications services could generate $4.5 billion annually......
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That makes the move to Plano a logical step in becoming a formidable player in the telecommunications industry, said Naqi Jaffery, mobile communication analyst for Dataquest, a division of GartnerGroup of Stamford, Conn.
"Telecommunications is becoming a major focus for them, not only from an infrastructural perspective, but also from a devices perspective," Jaffery said. "They apparently have come to the conclusion that this is an area that is going to expand and that there are synergies between what they do -- as a manufacturer of computers -- and developing products for the telecommunications industry."
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From the info given in this article, it seems to me that this piece of business alone is worth $30B-$40B ($18-$23 per share) based on WS current valuation of similar businesses.
Regards
Salah |
