Subscribe and receive the latest news from the industry.
Join 62,000+ members. Yes it's completely free.
The Internet buzzed when Nokia reportedly was preparing a deal for Juniper Networks. Now, Nokia has denied those rumors, but Juniper could still be in play.
November 30, 2017
For a brief few hours this week, the Internet buzzed with reports that Nokia was preparing a $16 billion-deal for Juniper Networks that would marry together both companies' routing and switching business along with security and other features.
A few hours after CNBC reported the deal on November 29, Nokia issued a denial of the story, noting: "Nokia is not currently in talks with, nor is it preparing an offer for, Juniper Networks related to an acquisition of that company."
CNBC reported the Nokia Corp. (NYSE: NOK) denial but did not back down from its original report. Juniper Networks Inc. (NYSE: JNPR), for its part, has remained silent, even after its stock got an overnight bump from the news. On Thursday, November 30, the company's stock was trading at about $28.16 per share at mid-morning.
Figure 1: Rumor mill
(Source: Juniper Networks)
As Light Reading Editor-in-Chief Craig Matsumoto wrote on Thursday, a deal between Nokia and Juniper would create a telecom and enterprise behemoth with deep roots in switches and routing, as well as security. Nokia has aimed big before, with its $17 billion deal for Alcatel-Lucent. (See Update: Nokia Denies Reports of Juniper Deal.)
One problem with big acquisitions such as Nokia and Juniper, is that these deals are too big. Matsumoto pointed out that for a while it seemed that Cisco Systems Inc. (Nasdaq: CSCO) and Ericsson AB (Nasdaq: ERIC) would merge to form a megafirm, but those rumors eventually ran their course.
Keep up with the latest enterprise cloud news and insights. Sign up for the weekly Enterprise Cloud News newsletter.
That's not to say Juniper is not shopping itself around. The company has been struggling in the second half of the year, with CEO Rami Rahim noting during a recent earnings call that many of the company's hyper-scale customers are re-architecting their data centers and that's caused delays in purchases of switches and other products. (See Juniper's Cloud Woes Likely to Continue Into Q4.)
Juniper has also talked about "realignment" of staff, which could lead to layoffs, but that is not confirmed.
For more information, see the related story on ECN's parent site, Light Reading.
Managing Editor, Light Reading
Prior to joining Enterprise Cloud News, he was director of audience development for InformationWeek, where he oversaw the publications' newsletters, editorial content, email and content marketing initiatives. Before that, he served as editor-in-chief of eWEEK, overseeing both the website and the print edition of the magazine. For more than a decade, Scott has covered the IT enterprise industry with a focus on cloud computing, datacenter technologies, virtualization, IoT and microprocessors, as well as PCs and mobile. Before covering tech, he was a staff writer at the Asbury Park Press and the Herald News, both located in New Jersey. Scott has degrees in journalism and history from William Paterson University, and is based in Greater New York.
You May Also Like
Rethinking AIOPs — It's All About the DataMar 12, 2024
SCTE® LiveLearning for Professionals Webinar™ Series: Fiddling with Fixed WirelessMar 21, 2024
SCTE® LiveLearning for Professionals Webinar™ Series: Cable and 5G: The Odd Couple?Apr 18, 2024
SCTE® LiveLearning for Professionals Webinar™ Series: Delivering the DAA DifferenceMay 16, 2024