Light Reading

Riverbed Spurns Takeover Offer

Ray Le Maistre
1/16/2014
50%
50%

Riverbed has kicked back a $3 billion-plus takeover offer from activist investor Elliott Management, stating that the proposal "undervalues" the application delivery control (ADC) specialist.

The hedge fund, which holds a 10.5% stake in Riverbed Technology Inc. (Nasdaq: RVBD), made its $19 per share offer on January 8 and followed it up with a public letter earlier this week, urging the Riverbed board to consider any takeover offers. (See Riverbed Under Pressure to Sell.)

But following a board meeting, Riverbed announced that it would not consider the offer as it "undervalues the Company and is not in the best interests of shareholders."

Riverbed also announced better than expected preliminary financials for the fourth quarter of 2013, with revenues expected to be in the range of $284 million to $285 million and net income in the range of $0.30 to $0.31 per share.

The vendor also announced that it expects revenues for the first quarter (ending March 31) to be between $262 million and $268 million.

The fourth-quarter numbers and first-quarter outlook "are proof points that our strategy to offer the most complete platform for location-independent computing is beginning to deliver results," stated Chairman and CEO Jerry Kennelly. "As the leading application performance infrastructure provider, we will continue to focus on delivering shareholder value through strong execution.”

That news, as well as the anticipation that an improved takeover offer might be forthcoming (either from Elliott or another suitor), sent Riverbed's share price up to $20.14 in early trading Thursday.

And Kennelly made it clear that he is not averse to acquisition offers at the right price. "While the Board will carefully review any credible offer made to acquire the company, any such offer must deliver value to our shareholders in excess of what we believe will be created as we execute on our growth plans and capitalize on the significant investments we have already made in that regard," he noted in a prepared statement.

— Ray Le Maistre, Editor-in-Chief, Light Reading

(3)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
sam masud
50%
50%
sam masud,
User Rank: Light Sabre
1/17/2014 | 3:00:10 PM
Re: Tech companies M&A are getting driven by non-conventional way!
They seem to be in a pretty stong position financially and customer-wise, so I would not be surprised to see Elliott Management come back with a higher offer. But if would be even more interesting if another vendor were to make an offer for Riverbed.
Vishnu Goel
50%
50%
Vishnu Goel,
User Rank: Light Sabre
1/17/2014 | 4:35:37 AM
Tech companies M&A are getting driven by non-conventional way!
Ray, The current positioning of any telecom company in a M&A market is not driven by the traditional parameters like accretion of cash,geographical access or product complementarity.Nowadays depending upon the target co vision of its own growth through newer inflexion points and disruptive roots determine the future course.Most of the SPIT companies are looking for re-rated valuations by the potential acquirer.Again the core businesses are in the area of Cloud,WAN optimisation,or capex virtualisation.Vishnu Goel T&M +919810101238
Ray@LR
50%
50%
Ray@LR,
User Rank: Blogger
1/16/2014 | 11:49:40 AM
Price still climbing...
Someone's expecting a higher bid... the share price is still creeping up.

Keep in mind that Riverbed is oe of those cmopanies that has a real opportunity to capitalize, or take a hit, from network functions vitrualization. It has obviously been working its way into NFV, thoughm, and has virtualized appliances. Its key partenr currently is Juniper... so that's more than one thing they have in common then as Elliott is also piling the pressure on JNPR!
From The Founder
Against the odds, Huawei is growing its telecoms networking equipment business in the US -- that should be ringing some alarm bells for domestic vendors.
Flash Poll
Live Streaming Video
CLOUD / MANAGED SERVICES: Prepping Ethernet for the Cloud
Moderator: Ray LeMaistre Panelists: Jeremy Bye, Leonard Sheahan
Between the CEOs
Metaswitch's New CEO Martin Lund Discusses His Role

9|2|15   |   11:27   |   (2) comments


Technology industry veteran Martin Lund joins Metaswitch Networks this week as the company's new CEO. In this interview, Lund discusses his new role and the industry's progress with Light Reading CEO Steve Saunders. Lund believes that the industry disruption caused by SDN and NFV is creating opportunities for companies like Metaswitch – network software providers ...
Telecom Innovators Video Showcase
Nominum on Leveraging the Power of DNS to Deliver Superior Subscriber Experiences

9|2|15   |   07:13   |   (0) comments


Nominum CEO Gary Messiana talks about the challenges service providers face in competing for a much more sophisticated customer, a customer that has heightened expectations for more personalized and compelling digital experiences. Providers are focusing their efforts on delivering higher value subscriber services, retaining their existing customers and increasing ...
Between the CEOs
CEO Chat With Jeff Miller, ActiveVideo

8|28|15   |   19:05   |   (0) comments


Jeff Miller, President and CEO of ActiveVideo, talks to Light Reading founder and CEO Steve Saunders about the impact of virtualization on the TV and video distribution market.
LRTV Huawei Video Resource Center
Vodafone: Mobile Money Is About Customer Trust

8|27|15   |   06.36   |   (0) comments


Light Reading spoke with Vodafone's Ian Ravenscroft about the unique responsibilities and opportunities facing operators handling customers' financial transactions over the network.
Telecom Innovators Video Showcase
Palo Alto Networks on Expanding in the Carrier/Service Provider Market

8|26|15   |   07:54   |   (0) comments


Alfred Lee from Palo Alto Networks tells Steve Saunders about their new chassis-based system, the PA-7080, and how it can benefit service providers compared to legacy firewalls.
LRTV Custom TV
Global Services Forum Preview

8|25|15   |   02:36   |   (0) comments


Light Reading's CEO and Founder Steve Saunders talks about Huawei's upcoming Global Services Forum with the help of Heavy Reading's Patrick Donegan and Teresa Mastrangelo.
Telecom Innovators Video Showcase
Infoblox on DNS Threat Index

8|19|15   |   04:39   |   (0) comments


Dilip Pillaipakam from Infoblox talks to Steve Saunders about his company's core network services.
Between the CEOs
CEO Chat With Ihab Tarazi, Equinix

8|14|15   |   20:18   |   (1) comment


Equinix CTO Ihab Tarazi talks to Light Reading founder and CEO Steve Saunders about the dramatic changes in the data center, cloud and interconnect markets and discusses the impact of SDN and NFV in the coming years.
Telecom Innovators Video Showcase
The Netformx Ecosystem

8|14|15   |   09:39   |   (1) comment


Ittai Bareket, CEO of Netformx, talks with Steve Saunders about the Netformx Ecosystem, which employs cutting-edge prescriptive analytics to help solution providers maximize profits.
Telecom Innovators Video Showcase
Versa Networks on Leveraging VNFs

8|12|15   |   07:37   |   (0) comments


Kumar Mehta, founder and CEO of stealth mode startup Versa Networks, talks with Steve Saunders about how providers can best leverage virtualized network functions (VNFs).
LRTV Custom TV
Transforming the Network Through OPNFV

8|5|15   |   7:09   |   (0) comments


Sandra Rivera, VP Data Center Group; GM Network Platforms Group, Intel Corporation, on OPNFV Arno and how the industry is coming together to accelerate the deployment of NFV and transform the network.
LRTV Huawei Video Resource Center
Huawei ONS Product Demo

8|3|15   |   6:01   |   (0) comments


Huawei shows at Open Networking Summit 2015 in Santa Clara how its SDN and NFV solutions embrace openness.
Upcoming Live Events
September 16-17, 2015, The Westin Galleria Dallas, Dallas, TX
September 16, 2015, The Westin Galleria Dallas, Dallas, TX
September 16, 2015, The Westin Galleria Dallas, Dallas, TX
September 29-30, 2015, The Westin Grand Müchen, Munich, Germany
October 14-15, 2015, New Orleans Ernest N. Morial Convention Center, New Orleans, LA
November 5, 2015, Hilton Santa Clara, Santa Clara, CA
November 17, 2015, Santa Clara, California
December 1, 2015, The Westin Times Square, New York City
December 2, 2015, The Westin Times Square, New York City
All Upcoming Live Events
Infographics
Cisco's cloud and virtualization portfolio can increase business agility and innovation by building a more flexible network architecture.
Hot Topics
T-Mobile CEO Plays Data Traffic Cop
Sarah Thomas, Editorial Operations Director, 8/31/2015
CEO Chat With Bill Gates
Steve Saunders, CEO and founder, Light Reading, 8/31/2015
Time to Monetize Cable WiFi
Alan Breznick, Cable/Video Practice Leader, 8/31/2015
New Apple TV: More $$, Not Content – Report
Mari Silbey, Senior Editor, Cable/Video, 8/31/2015
Ex-AlcaLu Boss Tasked With Bolstering Altice
Iain Morris, News Editor, 9/1/2015
Like Us on Facebook
Twitter Feed
September 16, 2015
Wi-Fi First or Second?
September 22, 2015
Media Begins With “Me”
Webinar Archive
BETWEEN THE CEOs - Executive Interviews
Technology industry veteran Martin Lund joins Metaswitch Networks this week as the company's new CEO. In this interview, Lund discusses his new role and the industry's progress with Light Reading CEO Steve Saunders. Lund believes that the industry disruption caused by SDN and NFV is creating opportunities for companies like Metaswitch – network software providers with the agility to embrace new technologies quickly and the ability to deliver on substantial projects for global network operators.
The scene: Last Saturday, lunchtime, the interior of a shi-shi-foo-foo eatery in Manhattan's SoHo district.
Cats with Phones
It's a New Age... Click Here
When smartphones replace stuffed animals.