And let's also keep in mind too, if this deal does in fact happen- and I suspect we're not going to get a lot of details on it when Cisco reports earnings later this week. And I know you've been talking to folks about where Cisco is going to go from here as well.īRIAN SOZZI: Yeah. So even if it's not happening now that it doesn't seem to be off the table. Over at Piper Sandler, they're saying Splunk is the most strategic company that Cisco could purchase. At the same time, it would be a long and complex integration that could leave it open to some competition. And the folks over Jefferies for example said that the deal could generate a lot of potential synergies. That said, analysts also seem to think it's probably a good idea for Cisco to make an acquisition like this. JULIE HYMAN: I've been looking at some of the analysts' commentary this morning, Sozz, and most of them say that Cisco would have to pay more than the reported upon price of $20 billion because Silver Lake has an investment in Splunk and that private equity firm could potentially push that price higher to try and get a higher valuation.
CEO Doug Merritt left a couple of months ago because of really a poor set of quarters from him. They have an interim executive running the company. And buying Splunk would go a long way to helping them achieve that mission.Īnd also let's keep in mind too, Splunk is essentially flying rudderless right now. Instead of being known for lower margin routers and switchers.
SPLUNK NEWS SOFTWARE
And that philosophy has continued under the CEO he picked to lead or just follow him as a successor, of course, that's Chuck Robbins now.Īnd I was going, I went back to look at some comments from Cisco's investor day, Julie, in September of last year, and they really made a case to Wall Street then that they want to be seen as more of a software maker and they want to fetch more of a software maker type valuation multiple in the market. The modern-day Cisco has been built through acquisitions, many of which were undertaken by Chambers. I've been covering Cisco for some time, going back to when our friend John Chambers was running the company. But to me, Julie, it makes absolute sense. The talks probably aren't even going on anymore but it's enough to send those Splunk shares 7% higher, Sozz.īRIAN SOZZI: Yeah, both Cisco and Splunk declined to comment to Yahoo Finance on these deal talks. There was a report over the weekend that the company had been in talks with Splunk and that they didn't agree to buy each other. Let's take a look at some individual movers though, and this is a situation that you were watching over the weekend, Cisco which, of course, is a company that's been acquisitive, may be acquisitive again. So we'll see how things look when we open up. And we are seeing not the lows of the session, actually kind of creeping back towards little changed here at this point, Brian Sozzi. JULIE HYMAN: We're looking at futures this morning that are showing a bit of a dip here ahead of the opening bell.
0 kommentar(er)
