Paul,
<< I doubt that they want to do it, but a BUY OUT of Intel may make both FINANCIAL and STRATEGIC sense to Cisco. >>
In my humble optical opinion, I still have fantasies that Intel buys MRVC, which is positioning itself as an end to end optical networking company (Linux, Terabit, Accelerouter). They could get MRVC for much cheaper and use their excellent products in a way that's similar to how they hurt 3Com in adapter cards. We've talked about this before here. Their ultimate goal is always to sell more cpus, of course. So, with Mrvc one could perhaps slash some prices on optical gear to lead to cuts at the big 3 (csco, lu, nt) so, effectively, cheapening broadband gear to keep CPU demand high. Demand for csco's stuff seems to be immune to competition in the enterprise, so perhaps this is a losing idea.
If Intel buys a public networking company, I believe it would have to be a smaller player otherwise there would be too much scrutiny. Would anyone know what was Level One's revenue and market cap when Intel announced their bid?
thanks
pigboy |
