According to rumors buzzing across Wall Street, Cisco Systems may make a bid to acquire Nokia. The rumor claims that Cisco CEO John Chambers is interested in merging Cisco with Nokia. Cisco did not comment on the report. Nokia spokespeople dismissed the report as speculation. Cisco Systems has a market capitalization of over $123 billion. Nokia has a $71 billion market capitalization. Many analysts and insiders are skeptical about the rumors.
Some financial analysts, however, claim the deal makes sense, especially if Cisco opts to buy Nokia's network infrastructure business. Nokia is the world's second-largest wireless network infrastructure vendor after Ericsson. Cisco is making an aggressive push into the network infrastructure business, especially as wireless and landline service providers transition to IMS and other all-IP network systems.
For more on the Cisco, Nokia rumor:
- read this article from Investor's Business Daily
PLUS: Many are skeptical about the Cisco, Nokia merger rumors. Article