Cisco Buys WebEx for $3.2 Billion

Cisco Systems announced the acquisition today. WebEx, the original online collabrative tool, posted sales of $380 million with profit of around $47 million (according to Om). How in the hell is a company with $380 million in sales worth nearly ten times that at sale?

A little anecdote for Cisco; I recently participated in an evaluation of your new acquisition. I know other people have done the same in our larger orginization. You weren't even in the running. Lack of bundled VoIP, a typical market leader's sales pitch, and stiff competition combined with out of market pricing.. what a winning combination.

I seriously hope Cisco has some major initiatives planned for WebEx properties. There are far better products out there for considerably less money. I would think for $3.2 billion, Cisco could have built, from the ground up, a better competitive product. I sure hope this isn't Cisco's Skype.

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