Deals

by Carlo Longino




Huawei, Marconi Talking Merger

from the sitting-in-a-tree dept

While some unnamed source has sent the financial and telecom markets into a tizzy with the rumor that Cisco is looking to buy Nokia, there's word of some much more reasonable merger talks that are actually happening, between Marconi and Huawei. This linkup is the polar opposite of the Cisco-Nokia rumors -- it's believeable and makes perfect sense. Huawei and Marconi are companies going in different direction: the Chinese upstart has been growing like mad, while the member of the European old guard has been struggling for several years as it's failed to deal with the aftermath of the telecom bubble bursting. While Huawei's been successful getting its low-cost equipment in networks in many parts of the world, it could use Marconi's experience and expertise (and perhaps even its brand name) to help crack markets where it's struggled to gain a foothold, particularly in the US.

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