Cisco to Acquire WebEx

Earlier this week, Cisco (CSCO) entered a definitive agreement to acquire WebEx (WEBX) for $3.2 billion cash buy out. WebEx CEO Subrah Iyar must have had his negotiation hat on as he delivered a hefty 25% premium on the deal for all WebEx shareholders. It's interesting to me that Cisco is buying WebEx for $3.2 billion when WebEx's 2006 revenue was $380M. The numbers just don't add up unless there is some significant strategic valuations in play...the WebEx Connect Strategy perhaps???

WebEx will operate as an independent business unit with Subrah Iyar reporting to Charlie Giancalo, Cisco Chief Development Officer and President of Cisco-Linksys. Download Charles_Giancarlo_bio_3.2.07.pdf

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I for one am very, very excited about the future of Cisco-WebEx.

Thanks,
David Chao
The Web Conferencing Expert