Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Newbridge Networks -- Ignore unavailable to you. Want to Upgrade?

To: thebeach who wrote (14886)	11/21/1999 11:55:00 PM
From: MoreBandwidth	Respond to of 18016

I also think it might be wise for Cisco to make a play for Newbridge. SBC announced the 6 billion dollar deal that will serve 77 million homes and Cisco is not even mentioned. That's a very large deal and no one even asked the question why they were not mentioned. Are there other large deals coming down the road from Bell Atlantic, British Telecom and others that Cisco will not be part of? Peppe can you help us out here on why they were not part of the SBC Deal. Is Cisco not needed to provide the services to these homes? MB

To: thebeach who wrote (14886)	11/22/1999 12:03:00 AM
From: Tunica Albuginea	Respond to of 18016

the beach: if CSCO buys NN, they will kill off LU and NT and everybody else for years to come; they will definitely be no 1, King of The Hill. If CSCO makes an offer for NN it will demonstrate that CSCO has a true leader in JC,who can rise above the occasion and above the past and look to the future, IMHO TA Message #14886 from thebeach at Nov 21 1999 9:12PM Interesting post from Yahoo: There are only two companies not interested in NN. Lucent is supposed to be one of them. I am not convinced Lucent isn't interested. They could put a lock on the WAN core market and even control the access market through LMDS and ADSL. Lucent could ensure there would be no squeeze on margins in the future. With so many companies that could benefit from NN's technology it is hard for me to imagine how anybody who has a little business sense and a small understanding of the technology can believe a company will be able to get NN for only $33 a share. If ATM technology was so easy to develop Lucent wouldn't have paid $20 billion for ascend. I don't believe for a minute they paid that much for the Ascend customer base. This fact alone indicates how much time and money it takes to develop ATM technology. So why wouldn't a company pay $10 billion for the best ATM technology in the market place. As I have stated previously you have to take into consideration the hidden value of the affiliates on the balance sheet. The acquiring company can sell the interest in the affiliates for $2 billion easily. The acquiring company can also sell the TDM business, high margin and no furtrher research and development expenditures needed. TDM revenue could easily be $500 million a year. The TDM portion could be sold for $1.5 to $2 billion. There is still a lot of demand for T1 products. I still think it will be CSCO who will put forth the strongest bid. If Chambers wants NN he will not be cheap. Look at his history, stratacom and cerent. He may even go for a 1 for 1 deal just to get rid of the other sharks from Europe who only want a bargain and a good one at that. The best thing for Newbridge shareholders to do right now is to hang tight or we will hang alone. Don't let individuals on this board convince you to sell out for peanuts.

To: thebeach who wrote (14886)	11/22/1999 12:22:00 AM
From: fumble	Read Replies (1) \| Respond to of 18016

Copyright 2000 (!!) a couple of books on related subjects "Designing Quality of Service Solutions for the Enterprise wiley.com "Voice over IP" by Uyless Black phptr.com I skimmed through both of these books at the local Borders and came away with the impression that ATM is still the solution. (Why reinvent the wheel using bubblegum when you already have Magnesium) VoIP is iffy - even the author says so - the current enthusiasm is propped up by the fact that ISP's don't pay access charges - this may change and prick the VoIP bubble. Quality of Service is not a simple scheme. There are many different types of bandwidth needs and corresponding QoS requirements. ATM has (and has had) solutions, whereas all of the IP schemes are halfway and probably will not scale to reasonable network sizes (yes - it says in the book). How does this effect the price of tea in china? Or more to the point - the selling price of NN? IMHO - Cisco is probably concerned that ultimately, IP will go away, or be relegated to the distant edge, or data-only networks where it will not participate in the future boom in video conferencing, distance learning, realtime audio (the conference call for example), etc. Cisco needs ATM and, instead of investing in its own ATM R&D, it will buy NN. The price which Cisco will be forced to pay will depend on who else is sitting in. I wonder if IBM will take a seat at the NN auction?