Cisco takes aim at the videoconferencing market
To pay $3B US for Tandberg
Last Updated: Thursday, October 1, 2009 | 1:26 PM ET
CBC News
Cisco Systems Inc. announced Thursday it will pay cash to buy Norway's Tandberg ASA for $3 billion US in a bid to dominate the global market for videoconferencing.
The price is twice the value of the present market for videoconferencing equipment.
Cisco is the biggest maker of computer networking equipment in the world. It had built up a cash hoard of more than $35 billion US as of the end of July, most of that overseas. The deal for a foreign company allows it to avoid paying U.S. taxes.
Cisco has been selling its up-market TelePresence systems featuring multiple plasma screens with life-size images that allow conference participants in different cities the illusion of face-to-face communication.
Some experts predict huge growth for videoconferencing. Calgary-based economist and author Peter Tertzakian predicted in his book, The End of Energy Obesity, that high energy prices will return and encourage the use of videoconferencing to save costs.
Tandberg had a 40 per cent share of the global videoconferencing market in the second quarter this year, according to Wainhouse Research.
With files from The Associated PressShare Tools
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