Scientific Atlanta is Bought by Cisco Systems

[ironchapman]

Anyone seen this?

Cisco systems is going to buy Scietific-Atlanta for $6.9 billion. It is set to become part of Cisco's "quad-play": being able to offer data, video, mobility, and voice convergence to its customers. Sci-ATL is set to become the video part of it.

See More (Techworld.com)

[ironchapman]

first of all, I think this topic needs a bit of a bump, seeing as this is a major even that was ignored by many of the forumers.

Secondly, Sci-Atl is being sued over the deal it made with Cisco Systems! Not just one suit was filed, but two! They are being sued because the directors of the companies are being accused of violating their duty to the stockholders and that the $6.9 billion dollar sale is "without merit".

See More (Reuters)

Any thoughts on the lawsuits? The company being bought in general? What will it do for Atlanta? The company?

[Andrea]

Any thoughts on the lawsuits? The company being bought in general? What will it do for Atlanta? The company?

A European friend of mine who's in this business tells me it is a technology driven merger, consonant with Cisco's concept that digital television is basically a form of networking that is essential to its other IP based products. He says it's a smart move for both companies in that it should help them integrate their work at the server end. SA has already developed a strong international presence, and Cisco's technical and financial resources should provide a major boost.

Interview with Cisco and Scientific Atlanta CEO's