& cplSiteName &

Cisco Bets $5B More on Video With NDS

Craig Matsumoto
3/15/2012
50%
50%

Cisco Systems Inc. (Nasdaq: CSCO) signed a deal to acquire video security company NDS Ltd. for roughly US$5 billion, the companies confirmed Thursday morning.

Based in Israel, NDS makes security and conditional-access software for video networks. To Cisco, that means a fresh approach to features such as video search and navigation.

NDS also offers a downloadable version of its encryption system, something that could help Cisco's set-top business (which the company still denies it's trying to sell).

Cisco expects to close the deal in the second half of 2012.

Why this matters
Cisco continues to bet its future on video. NDS gives the company a way to deepen relationships with the service providers that want to spread video to various consumer and mobile devices, according to a Thursday morning blog posting by Senior Vice President Marthin De Beer.

NDS also has some sizable customers in China and India, so the deal brings Cisco more deeply into those markets.

On a political note, Cisco has been not-so-subtly threatening that its acquisitions will favor overseas deals. It's a way of indirectly pressuring the U.S. government to offer a tax break on repatriation of international profits. You can bet Cisco is going to emphasize the fact that its largest acquisition in years happened overseas.

For more
More info on Cisco's video aspirations:



— Craig Matsumoto, Managing Editor, Light Reading

(6)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
craigleddy
50%
50%
craigleddy,
User Rank: Blogger
12/5/2012 | 5:39:20 PM
re: Cisco Bets $5B More on Video With NDS


Two immediate reactions: 1. Holy s--t! I don't think anyone saw this coming. Anyone know the back story of how this came about? 


2. NDS was a leading opponent of the cable duopoly (Cisco and Moto), seeking to break it with its own conditional access and other solutions. However, NDS developers like working with the Cisco cable platform (formerly Scientific Atlanta) because it is more flexible for interactive apps and UIs than Moto's platform. What becomes of the cable duopoly now? Did the fox just buy the henhouse?             

Jeff Baumgartner
50%
50%
Jeff Baumgartner,
User Rank: Light Beer
12/5/2012 | 5:39:19 PM
re: Cisco Bets $5B More on Video With NDS


Oh, man. This definitely changes the game.  Lots of implications on the security side and well beyond them, as Mr. Tombes points out.  I'm getting my head around some of the bigger ones and will offer a list soon on my blog that you can poke holes at or expand on. JB

AESerm
50%
50%
AESerm,
User Rank: Light Beer
12/5/2012 | 5:39:19 PM
re: Cisco Bets $5B More on Video With NDS


CA is a huge part of NDS, but there's more. At IBC, they offered up the 'blow you away' demo with Surfaces, a wall-sized exploitation of video display technology. (My colleague John Moulding was gaga in this write-up. Best demo in 13 years of IBC, etc.) But it could end up being a market-mover, like TelePresence, only multi-dimensional (3D, 4k, multi-screen, etc.). Must confess, though, my first unfair thought today was that the co-owners of NDS (News Corp) needed cash for mounting legal bills.

Flook
50%
50%
Flook,
User Rank: Light Beer
12/5/2012 | 5:39:18 PM
re: Cisco Bets $5B More on Video With NDS


Would this be the second most expensive acquisition Cisco has ever made? I seem to recall that Scientific Atlanta was around $7 Billion.

Pete Baldwin
50%
50%
Pete Baldwin,
User Rank: Light Beer
12/5/2012 | 5:39:17 PM
re: Cisco Bets $5B More on Video With NDS


Cerent was about $7B, IIRC.  The price was based on bubble-era Cisco stock, but that's the amount it took to keep Cerent from trying to go public.

Jeff Baumgartner
50%
50%
Jeff Baumgartner,
User Rank: Light Beer
12/5/2012 | 5:39:17 PM
re: Cisco Bets $5B More on Video With NDS


I believe you are right... No. 2, behind S-A, which Cisco bought for $6.9B in 2005, so you were right on the price. JB

Featured Video
From The Founder
Light Reading founder Steve Saunders grills Cisco's Roland Acra on how he's bringing automation to life inside the data center.
Flash Poll
Upcoming Live Events
March 20-22, 2018, Denver Marriott Tech Center
March 22, 2018, Denver, Colorado | Denver Marriott Tech Center
April 4, 2018, The Westin Dallas Downtown, Dallas
May 14-16, 2018, Austin Convention Center
All Upcoming Live Events
Hot Topics
MWC 2018 Threatens to Be 5G New Radio Bore
Iain Morris, News Editor, 1/10/2018
Sprint Says No to mmWave, Yes to Mobile 5G
Dan Jones, Mobile Editor, 1/11/2018
Altice USA Embraces Home-Alone Strategy
Alan Breznick, Cable/Video Practice Leader, Light Reading, 1/11/2018
Huawei Still Knocking on US Door – but AT&T Deal Thwarted
Ray Le Maistre, International Group Editor, 1/9/2018
Animals with Phones
Customer Support Done Right Click Here
"You've reached 'Who's a Good Boy?' How can I direct your call?"
Live Digital Audio

A CSP's digital transformation involves so much more than technology. Crucial – and often most challenging – is the cultural transformation that goes along with it. As Sigma's Chief Technology Officer, Catherine Michel has extensive experience with technology as she leads the company's entire product portfolio and strategy. But she's also no stranger to merging technology and culture, having taken a company — Tribold — from inception to acquisition (by Sigma in 2013), and she continues to advise service providers on how to drive their own transformations. This impressive female leader and vocal advocate for other women in the industry will join Women in Comms for a live radio show to discuss all things digital transformation, including the cultural transformation that goes along with it.

Like Us on Facebook
Twitter Feed