Interesting People mailing list archives
Re: Nortel files for bankruptcy
From: David Farber <dave () farber net>
Date: Wed, 14 Jan 2009 13:34:16 -0500
Begin forwarded message: From: Claudio Gutierrez <claudio.gutierrez.m () gmail com> Date: January 14, 2009 1:03:12 PM EST To: dave () farber net, jsq () quarterman org Subject: Re: [IP] Nortel files for bankruptcy Dave, John Nortel had a long history of failed acquisitions (add Clarify and Alteon acquisitions for about $10 bn) and not integrating the new products in an shared vision. Nortel is a case study about how not to do merger & acquisitions and being late in emerging technologies, just to get on the train and acquire companies when they were already big and expensive. As an example of Nortel being late, we had talks with them in 2002 about IP telephony and they were dismissing it because it didn't offer the same features as legacy telephony. Cisco was the contrary: almost all their acquisitions (except StrataCom) were of small and innovative companies, in fact they have bought companies without any RTM product! Regards Claudio On Wed, Jan 14, 2009 at 2:08 PM, David Farber <dave () farber net> wrote:
Begin forwarded message: From: "John S. Quarterman" <jsq () quarterman org> Date: January 14, 2009 10:10:50 AM EST To: dave () farber net Cc: "John S. Quarterman" <jsq () quarterman org> Subject: Nortel files for bankruptcy Dave, For IP: "WASHINGTON (MarketWatch) -- Nortel Networks Corp., once the largest company in Canada, has filed for bankruptcy protection, victimized by the deepening economic slump." http://tinyurl.com/6uny75http://www.marketwatch.com/news/story/nortel-files-bankruptcy-protection/story.aspx?guid= {824CFA6D-C3EA-4C0B-AF3C-4D559F38A401}&dist=TQP_Mod_mktwNBack in 1998, Nortel bought into the Internet business by purchasing Bay Networks for $9.1 billion: http://news.cnet.com/Nortel-buys-Bay-for-9-billion/2100-1001_3-212264.html followed by purchases of Cambrian Systems for $300 million: http://news.cnet.com/2100-1033-218880.html&tag=mncol%3btxt and Shasta Networks for $340 million: http://news.cnet.com/Nortel-buys-start-up-Shasta-Networks/2100-1033_3-224344.html And perhaps plus others I don't recall. As recently as August 2008 Nortel bought DiamondWare (3D stereo conferencing): http://blog.tmcnet.com/blog/rich-tehrani/att/nortel-buys-diamondware.html and Pingtel (SIP software), seeking to be a player in "unified communications": http://www.lightreading.com/document.asp?doc_id=161446But apparently buying into a new market didn't work for Nortel this time.-jsq ------------------------------------------- Archives: https://www.listbox.com/member/archive/247/=now RSS Feed: https://www.listbox.com/member/archive/rss/247/ Powered by Listbox: http://www.listbox.com
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