Cisco's big-bucks buyout of online meeting service WebEx seems a bit spendy, but continues the networking giant's trend of buying companies that will drive additional network usage -- and thus demand for Cisco products.
If Cisco hopes to use the acquisition to spur growth in new markets -- as CNET News.com's Marguerite Reardon supposes -- it may have overpaid. WebEx reported just $380 million in revenue last year, and a paltry $49 million of net income.
Frankly, I don't see this a watershed event for anyone except WebEx stockholders, who made out like bandits.
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