The Cisco rumor has been around for years. I wouldn't put much stock in it.
9 replies (most recent on top)
Rumor is Cisco is seriously looking at acquiring NetApp due to the Dell /EMC mega merger.
Agree with the last post. Then some really deep cuts will happen under the new company management. Tons of redundancy to cut away...
Becoming a more attractive acquisition target is often associated with layoffs because it significantly improves the Revenue/employee metric that M&A experts look at.. Notice it's not like they're letting go of a ton of quota bearing sales reps... When reducing cost centers like IT, Tech Support, Products that aren't producing much $$ anymore in the short-run it doesn't impact revenues too much, but the revenue/employee metric and margins get better.. makes the company more attractive on paper for other companies to then consider acquiring. Keep in mind that NetApp is still Very cash rich (e.g. >$5B in the bank) with revenues of >$5B and a market cap of <$10B...
At those valuations, if the stock misses and drops another 5-10% this quarter, makes for a sweet way to collect some cash, IP/patents, couple top notch leftover employees, huge amount of enterprise customers....regardless of what you think of their products..
these rumors are always started by disgruntled employees, people have been saying it for years...
Who would be foolish enough to buy NetApp
I worked for NetApp for 9 years (up until last year). There were rumors every single yet that they would be bought.
Haha there are always rumors of someone buying Netapp. Wishful thinking but bumping the stock price up with layoffs and cost cutting doesn't hurt. Sure seems like they are perfecting the process to kill of any sort of acquisitions though.
Yeah, not happening.
Not sure where you got that from.
Maybe in another year or so.