Can you say MRVCabletron!!!
This sprint deal for Cisco should prove to be the final straw that breaks the dam holding back the networking consolidation that is inevitable! If the powers that be in networking don't get their collective act together SOON, they will never catch up to CSCO and will be relegated to case studies in missed opportunities at the nations' B-schools!
If such a merger were to be done however, I would want MRVC to be the acquiring company because CS management would have to be shown the door due to their inept performance and severe lack of leadership!
MRVC would be able to grow its business on the cheap by acquiring the best value in the industry! Veteran sales and engineering staff, $1.3 billion in annual sales, no debt to speak of, and a market cap of only $2 billion! INSTANT name recognition, clout, sales offices, and customer relationships!
CS would be able to dump their troubled management team, acquire new blood, leadership, and vision...and finally start to focus on shareholder value! Bloated administrative staff could be nixed, saving hundreds of millions per year! It is true that management owns around 25% of CS, but institutions now account for better than 53% of outstanding shares, and if one looks at a two year chart, I think you can safely bet that the institutions can't wait to part with the management team at CS!
ASND, BAY, COMS, CS, FORE, NN, & MRVC will, SOONER rather than later, get the message that CSCO is stomping into their heads...BIGGER IS BETTER! Those seven networkers should boil down to 2 or 3 extremely competitive companies within the next two years...if not, I'm afraid we will be seeking government help in reigning in another monopoly! MSFT, INTC, and soon CSCO!?...I think the Justice department is biting off much more than it can chew! They should let the market place settle the score...remember that there is always LU to slap CSCO around for awhile, while the rest of the group get on with the business of MARRIAGE!!!
$weet Dream$
$tarpopper
PS. Very interested to know what other possible combinations in networking that SI threadsters would like to see develop, and why they would give CSCO a run for their money! |
