Menu
Cisco wins Tandberg with 91.1 percent stake

Cisco wins Tandberg with 91.1 percent stake

After a hard-fought battle, Cisco has won control of videoconferencing leader Tandberg with ownership of 91.1 percent of the company's shares. Cisco had to raise its initial US$3 billion offer and extend the acceptance deadline three times in order to gain control of the company. Cisco's initial offer, made on October 1, was rejected by more than 90 percent of Tandberg shareholders. Late Thursday, at the expiration of the third acceptance deadline, Cisco said it controlled 89.1 percent of Tandberg shares. The condition for ownership of the company was control of 90 percent of Tandberg shares, but Cisco waived this condition based on a 2 percent stake it acquired in November, according to published reports. Of the 140 or so acquisitions Cisco has made in the past 16 years, Tandberg was perhaps the most challenging. Two groups of shareholders controlling 30 percent of the company balked at the initial $3 billion offer. And then two investment firms representing other stakeholders issued a public letter to Cisco CEO John Chambers and Senior Vice President Ned Hooper stating that Cisco was undervaluing the company and spelling out specific reasons why it should hike its offer.

Cisco relented on November 16, raising its offer for Tandberg to $3.4 billion and extending the acceptance deadline to December 1 from November 18. The November 18 deadline had previously been extended from November 9. On December 1, Cisco again extended the acceptance deadline by two days, to December 3.

By acquiring Tandberg, Cisco is looking to fill out its desktop and midrange videoconferencing product portfolio. Its high-end TelePresence offerings can cost hundreds of thousands of dollars and are apparently too costly and elaborate to scale downmarket, as Cisco initially intended.

Cisco will also now become the market leader in videoconferencing. Tandberg is the current leader with about 40 percent share, ahead of Polycom, according to Wainhouse Research.

Cisco views video as the "killer app" that will fill up bandwidth and drive equipment upgrades into the next decade.


Follow Us

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags ciscotandberginternational news

Events

Featured

Slideshows

Channel kicks 2021 into gear as After Hours returns to Auckland

Channel kicks 2021 into gear as After Hours returns to Auckland

After Hours made a welcome return to the channel social calendar with a bumper crowd of partners, distributors and vendors descending on The Pantry at Park Hyatt in Auckland to kick-start 2021.

Channel kicks 2021 into gear as After Hours returns to Auckland
The Kiwi channel gathers for the 2020 Reseller News Women in ICT Awards

The Kiwi channel gathers for the 2020 Reseller News Women in ICT Awards

Hundreds of leaders from the New Zealand IT industry gathered at the Hilton in Auckland on 17 November to celebrate the finest female talent in the Kiwi channel and recognise the winners of the Reseller News Women in ICT Awards (WIICTA) 2020.

The Kiwi channel gathers for the 2020 Reseller News Women in ICT Awards
Show Comments