EMC Buying Juniper to Battle Cisco Doesn't Add Up

In the video below, senior technology analyst Eric Bleeker looks at a report today that EMC could be looking to make a bid for Juniper to buy Cisco. 

The report had humble beginnings, surfacing on finance site Benzinga, but was quickly rereported. 

Eric notes that investors should be cautious with this rumor. As opposed to reports out of sites like The Wall Street Journal or Bloomberg, caution should always be shown when buyout reports surface from smaller sites. More to the point, he believes Juniper's strength with service providers makes it a less-than-ideal candidate for the networking opportunities EMC could address. 

The formerly strong alliance of EMC, VMware, and Cisco does seem to be unraveling. There are plenty of storylines around the two companies encroaching on each other's space, with some even speculating Cisco could make its own bid for EMC archrival NetApp.

However, just because EMC's subsidiary VMware made a move into an emerging area of networking with its purchase of Nicera, it doesn't mean the company will make a splashy acquisition of a stalwart in the space. If you're an investor buying Juniper on this rumor, it's probably best to reconsider. 

Investors in Cisco have struggled through years of middling returns. However, its dirt-cheap pricing had led many investors to strongly believe that the company is a buy. Fool tech analyst Tim Beyers has created a new premium report that digs into Cisco's business. The report comes with a full year of free analyst updates to keep you informed as the company's story changes, so click here now to read more.

Eric Bleeker owns shares of Cisco Systems and EMC. The Motley Fool owns shares of EMC and VMware. Motley Fool newsletter services recommend VMware. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.


Read/Post Comments (0) | Recommend This Article (2)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2064916, ~/Articles/ArticleHandler.aspx, 10/21/2014 1:13:49 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement