With HP and eBay breakups already underway, could Cisco be next?

Gigaom

CEO John Chambers has said he wants Cisco to be the biggest IT provider in the universe. RBC Capital Markets Analyst Mark Sue thinks Chambers should break it up instead.

Given that [company]Hewlett-Packard[/company] is already bifurcating itself into an enterprise company and a PC-and-printer vendor, [company]eBay[/company] is breaking out PayPal as a separate entity, and Elliott Management is pushing EMC to spin out VMware, it’s clear that big companies are under tremendous pressure to “maximize shareholder value” by breaking themselves apart.

Sue’s take is that splitting up [company]Cisco[/company] could push the stock to $40 per share or more for the first time in 14 years and unlock value in high-growth areas including the internet of things, wireless and security arenas. “eBay, [company]Agilent[/company], JDSU and even HP this morning get high marks from investors for their ability to adapt to a changing world,” Sue wrote.

His take is that Cisco could put its traditional networking hardware —…

View original post 170 more words

Advertisements

Leave a Reply

Please log in using one of these methods to post your comment:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s