Cisco Stops Buying
from the what-does-it-all-mean? dept
Business Week takes a look at why Cisco has stopped buying companies. Yes, their stock-as-currency has dropped significantly in value – but it’s still high enough, and they have plenty of cash on hand. At the same time, the valuations of companies they would acquire has dropped even more than Cisco’s. So that makes them cheap right? Except that the majority of Cisco’s acquisitions appear to be hiring sprees – rather than for products. Many of the companies they acquired to get the engineers in the company and the expertise they represented. So, Cisco stopping acquisitions is really just like a hiring freeze (and, oh yeah, they’ve got one of those as well).