Light Readers See Nortel Staying Single
The Canadian vendor’s new enterprise space tie-up with Microsoft Corp. (Nasdaq: MSFT), announced Tuesday, seems to be a nod in that direction by the company. (See Nortel Cuts 1,100 Jobs.) The company's are calling it an "alliance," one that Nortel CEO Mike Zafirovski believes will yield his company $1 billion in revenue by 2009. (See Nortel, Microsoft Team Up.)
But plenty of our pollees see M&A in Nortel's future. Twenty percent say Nortel will soon buy another company. Thirty-two percent believe Nortel will “get bought.”
Nortel and Huawei Technologies Co. Ltd. were recently cooking up plans for a joint venture, but ended up calling it off in June. (See Nortel, Huawei Kill JV.) But some believe Nortel may try a similar arrangement with another company in lieu of an outright merger or acquisition.
If that were to occur, readers believe Motorola Inc. (NYSE: MOT) is the most likely JV partner. Other popular candidates were Juniper Networks Inc. (NYSE: JNPR) with 17 percent of the vote, and Cisco Systems Inc. (Nasdaq: CSCO) and Huawei each getting 12 percent.
Another popular pick as a potential Nortel partner is Wal-Mart, which got 11 percent of the vote. Whether Wal-Mart or Huawei, there's a tendency to believe Nortel should pair up with a low-price leader.
The poll -- Nortel's Next Move -- will close at 5 p.m. ET on Thursday, July 20.
— Mark Sullivan, Reporter, Light Reading