When I saw this morning the news about the possible merge of
Nokia and Cisco I tought it was a summer rumour by an analyst with a fistfull of Nokia shares… but it seems it could be something behind the rumour.
Some facts about both companies:
- Nokia revenues for 2004 were at 29.3 billion euros
- Cisco revenues for 2004 were at 22 billion euros
- Cisco is valued at 100 billion euros
- Nokia is valued at 57 billion euros
- And it seems Nokia has 14 times more cash than Cisco!
So I really don’t understand what can Nokia get from this merge. And adquisition is out of scope due to the size of both companies. Cisco would not digest Nokia in years.
If it is true, then Cisco has realized that wireless can bite a big portion of its incomes in years to come, and needs to make a big move to still continue ahead being the leader of the internet connectivity. The future is wireless…