Feeds

Cisco charges the tube with $6.9bn set-top-box buy

Scientific-Atlanta opens video portal

Boost IT visibility and business value

Cisco has agreed to plunk down a whopping $6.9bn for Scientific-Atlanta, hoping to take a major share of the set-top-box market and push video efforts.

The networking giant will pay $43 per share in cash for Scientific-Atlanta ($5.3bn) and swallow $1.6bn in debt. With the buy, Cisco acquires one of the more dominant set-top-box makers. In addition, it pushes well beyond the data center to touch consumers where they live.

"Video is emerging as the key strategic application in the service provider triple play bundle of consumer entertainment, communication and online services," said John Chambers, CEO at Cisco. "The combination of Cisco and Scientific-Atlanta brings unmatched experience and innovation in delivering large scale video systems and networks, and the addition of Scientific-Atlanta further extends Cisco's commitment to and leadership in the service provider market."

With its previous Linksys acquisition, Cisco found one route to the consumer. This purchase, however, provides a more direct avenue for delivering content and services to the home.

Cisco plans to turn Scientific-Atlanta into a division of its Routing and Service Provider Technology Group. Scientific-Atlanta has 7,500 employees and reported revenue of $1.9bn in fiscal 2005.

Cisco expects the deal to close in its third fiscal quarter of 2006, pending standard approvals. ®

Best practices for enterprise data

More from The Register

next story
Amazon says Hachette should lower ebook prices, pay authors more
Oh yeah ... and a 30% cut for Amazon to seal the deal
Philip K Dick 'Nazi alternate reality' story to be made into TV series
Amazon Studios, Ridley Scott firm to produce The Man in the High Castle
Nintend-OH NO! Sorry, Mario – your profits are in another castle
Red-hatted mascot, red-colored logo, red-stained finance books
Sonos AXES support for Apple's iOS4 and 5
Want to use your iThing? You can't - it's too old
Joe Average isn't worth $10 a year to Mark Zuckerberg
The Social Network deflates the PC resurgence with mobile-only usage prediction
Feel free to BONK on the TUBE, says Transport for London
Plus: Almost NOBODY uses pay-by-bonk on buses - Visa
Twitch rich as Google flicks $1bn hitch switch, claims snitch
Gameplay streaming biz and search king refuse to deny fresh gobble rumors
Stick a 4K in them: Super high-res TVs are DONE
4,000 pixels is niche now... Don't say we didn't warn you
prev story

Whitepapers

7 Elements of Radically Simple OS Migration
Avoid the typical headaches of OS migration during your next project by learning about 7 elements of radically simple OS migration.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Solving today's distributed Big Data backup challenges
Enable IT efficiency and allow a firm to access and reuse corporate information for competitive advantage, ultimately changing business outcomes.
A new approach to endpoint data protection
What is the best way to ensure comprehensive visibility, management, and control of information on both company-owned and employee-owned devices?