Cisco Snatches Up WebEx
March 20th, 2007 | Published in Webinars | 1 Comment
Late last week Cisco agreed to acquire webinar firm WebEx for $3.2 billion in cash (press release). WebEx in 2006 generated nearly $50 million in profit on about $380 million in revenue. They have $300 million or so in cash on hand, so the net deal value is $2.9 billion. Under the terms of the agreement, Cisco will commence a cash tender offer to purchase all of the outstanding shares of WebEx for $57 per share. Ouch, that is a pretty steep price per share I would think.
There is some more detailed analysis and commentary here:
- Q&A: Inside Cisco’s $3.2 Billion WebEx Bet (Network World)
- WebEx: What Cisco Gets From Acquisition (Linux World)
- Why Cisco Bought WebEx (O’Reilly Radar)
WebEx may be the leader from market share point-of-view, but it
March 21st, 2007 at 9:33 am (#)
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