October 18, 2012
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.
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