Ethernet equipment

VC Eyes Nortel

2:10 PM -- You know who else might want in on the Nortel Networks Ltd. selloff? Venture capital.

A story from Bloomberg today says Bridgescale wouldn't mind ponying up for a piece of Nortel. By combining efforts with other firms, Bridgescale might be willing to spend $100 million, managing director Rob Chaplinsky said.

That's not enough to pick up the wireless pieces, which will go for at least $725 million -- or a lot more, if BlackBerry has its way. Come to think of it, it's not enough for the enterprise business either, considering the offer from Avaya. (See PE Firm Edges NSN's Nortel Bid, RIM Cries Foul Over Nortel Bidding Process, and Avaya Offers $475M for Nortel's Enterprise.)

And it sure isn't enough for the Metro Ethernet Networks (MEN) division. What's Chaplinsky hoping for, then? "A sliver of something," is how he phrased it to Bloomberg.

Why not? There's good technology to be had. I'm sure there are plenty more sliver-seekers out there waiting to pounce.

— Craig Matsumoto, West Coast Editor, Light Reading

Pete Baldwin 12/5/2012 | 4:00:11 PM
re: VC Eyes Nortel

True, and that's more private equity's mission, I guess.  But I think some people will be lurking around Nortel to see if they can grab some key patents without having to take on any people.  (Or product lines, maybe?  I don't have any product line in mind, just throwing that out there.)

Stevery 12/5/2012 | 4:00:11 PM
re: VC Eyes Nortel

Why not? There's good technology to be had.

There's also industrial-strength head chopping and restructuring to be done in order to run this as a profitable business (cuz IPOs of this size are going to be closed for quite some time). 

That is traditionally not the VCs' strong suit.

Sign In