Networking powerhouse Cisco is to buy the Web conference company WebEx for $3.2Bn.
WebEx is listed on the NASDAQ (WEBX) and is reported to be the leader in its field. They offer a ton of different products, all based around sharing information between a number of remote parties, with the majority of them featuring shared video.
Cisco is actively spreading the number of products and business areas that it covers – they have to really as companies like China-based Huawei move on to Cisco’s previously-core network businesses.
Scientific Atlanta, the maker of TV Set Top Boxes, was a previous purchase. In November 2005, Cisco slapped down twice as much cash for that one – $9.6Bn.
Strangely enough bringing WebEx into the Cisco fold is at the opposite end of the content creation spectrum.
As Charles Giancarlo, Chief Development Officer at Cisco, concisely put it, “As collaboration in the workplace becomes increasingly important, companies are looking for rich communications tools to help them work more effectively and efficiently.”
WebEx is currently focused on business applications, but it’s highly likely that nearly everyone will be carrying out video conferences in the future as travel becomes more expensive and general restrictions come into effect.