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European regulators approve Cisco's acquisition of Splunk

EU officials on Wednesday ruled that the Cisco-Splunk transaction does not raise competition concerns. $CSCO-0.3% $SPLK I looked up the company about 3 months ago and it was discussed here and is quite popular. So I want to bring this topic up today for the weekend. 😊

Transactions was announced in September with Cisco agreeing to pay $157 per share in cash for Splunk. Taking not long from the announcement, its share price quickly jumped to that part.

TheEuropean Commission made its decision on Wednesday, giving $CSCOto the-0.3%$28 billionpurchase. The deal does not violate antitrust laws. It said the acquisition "will not raise competition concerns, given its limited impact on competition in markets where the companies are active, as there are a sufficient number of alternative players."

Cisco said Splunk $SPLK'+0.2%ssecurity capabilities complement $CSCO-0.3% 's existing portfolio and the combination "will provide industry-leading security analytics and coverage from devices to applications to the cloud. Cisco CEO Chuck Robbins added that their combined capabilities "will support the next generation of security and observability with artificial intelligence"

CSCO

Cisco

CSCO
$47.79 -$0.13 -0.27%
1 Day
+0%
5 Days
+2.2%
1 Month
-1.21%
6 Months
-13.42%
YTD
-2.65%
1 Year
+0.53%
5 Years
-4.13%
Max.
+63,544.72%
SPLK
$156.90 $0.39 +0.25%
1 Day
+0%
5 Days
+0.09%
1 Month
+1.82%
6 Months
+25.17%
YTD
+2.58%
1 Year
+54.5%
5 Years
+26.66%
Max.
+340.28%

From what I watched of the last debate here, you guys were in agreement on buying somewhere between $40-50 for $CSCO-0.3%. Of course the lower price would be better. How do you see it now after approval? 😊... The acquisition of this company will surely bring them a shift in AI. But will it be enough to keep up with the competition?


The acquisition seems unnecessarily expensive to me, even if it makes sense strategically.

I haven't studied it much more, but I've read from some early reactions that it's expensive. Well, but hopefully they know what they're doing and as you write, it makes sense to them.

Kind of reminds me of the Seagen acquisition by Pfizer. In Cisco's case, the sudden drop in the exchange rate when the acquisition was announced tells us a lot about it.

@rickiereeve So I don't know about the Pfizer, but yes, I agree it wasn't cheap. We'll see, I'm just watching but not buying, I put a bell just on that $46 price as it fell there, I'd look more at it then if it gets there. 😊

Looks good to me and in my view it has potential. :)

Thanks for your insight. Well I have to check it out, I admit I haven't looked yet, I don't do much around any work over the weekend, although I take investing as a hobby because I enjoy it but I will check it out during the week. So would you consider $CSCO-0.3% for your portfolio? 😊

I get it, we're pretty similar, otherwise Cisco isn't exactly a company in my investment sector, but some smaller position/speculation wouldn't bother me. :)

@alfredgray I do IT a bit and I enjoy having this sector but I'm betting on stronger and more stable companies like MSFT,APPLE or GOOGL ... but just maybe as a speculation something that could still grow maybe more would be nice. I'm definitely not jumping into this. 😁

@mondaydayton And that's the main thing and also beautiful that we all have different preferences! Anyway, these great titles are my building blocks you could say :D definitely great for diversification!

@alfredgray I do, I like our thesis too. Maybe we'll meet in person at a reunion sometime. 😊

@mondaydayton I think our debate would be beneficial at the very least, so hopefully a reunion soon!

@alfredgray I think so too and it might not even still be about investing. Wondering which one might come out near you, at what time? ...Because I can't get on every one either.

Well, I don't hold the stock, but if I did, this news would make me happy. It looks pretty good, the stock is not that high and you can see the potential there and I quite like the vision. I'd probably have to look at it in more detail, but from a quick look there now and from what you write it doesn't look bad at all :D

I don't hold the stock either, but I'll take a look at it too and consider buying. :)

Great, I have the same approach :)