Cisco’s New Corporate Motto: Shop Till You Drop
by John Paczkowski
Posted on November 3, 2009 at 6:29 AM PT
Cisco’s fall acquisition binge continues unabated. Late Monday, the company announced plans to buy the set-top box business of China’s DVN Holdings for up to $44.5 million ($17.5 million upfront, with an additional $27 million based on performance). This after spending $3 billion on videoconferencing system maker Tandberg, wireless infrastructure outfit Starent Networks (STAR) and software-as-a-service security vendor ScanSafe–all in quick succession.
The deal gives Cisco (CSCO) a foothold in China’s massive cable market, whose 160 million subscribers make it the largest in the world. And with the Chinese government mandating full digitization by 2015, this figure could grow to 200 million in as little as three years.
“That presents for Cisco and other competitors in the market a very, very compelling market opportunity,” Hilton Romanski, VP of corporate development for Cisco, told Reuters. “What we’re trying to get access to is good local expertise that can help us think about how to make this transition, becoming an increasingly local company in China.”
