All rights reserved. Reach market shark status with 4 weeks of MarketSmith for $29.95 (that saves you $120)! "We can see why Splunk would reject such an offer ($20 billion) at this juncture," Bachman said. Splunk CEO on the data firm's new initiative focused on government cybersecurity. San Jose, Calif.-based Cisco sells routers, switches and security services as well as software products. Splunk named after spelunking, the sport of cave exploring mines data for insights, including security threats, a business that grew in importance as the coronavirus pandemic quickly forced many workers online. Find the best mutual funds, monthly performance reports and exclusive Get instant access to exclusive stock lists, expert market analysis and powerful tools with 2 months of IBD Digital for only $20! Splunk produces software used for searching, monitoring, and analyzing machine-generated data. Im an obsessive learner who spends time reading, writing, producing and hosting Iggy LIVE and WithInsightsRadio.com My biggest passion is creating community through drumming, dance, song and sacred ceremonies from my homeland and other indigenous teachings. With dominant position in multiple on-premise markets, Ciscos valuation has been held back by more gradual moves toward the cloud and the revenue transition from opex vs. capex focused IT.
quotes delayed at least 15 minutes, all others at least 20 minutes. Its past deals include Acacia, a maker of optical network components; Luxtera, a semiconductor company; and ThousandEyes, a cloud intelligence company. Morningstar: Copyright 2018 Morningstar, Inc. All Rights Reserved. 2000-2022 Investor's Business Daily, LLC. Iggy Garcia LIVE Episode 163 3D5D or R2D2?!? IggyGarcia.com & WithInsightsRadio.com, For more information, please visit: IggyGarcia.com & WithInsightsRadio.com, My guest is intuitive empath AnnMarie Luna Buswell, Iggy Garcia LIVE Episode 171 | An appointment with destiny, Iggy Garcia Live Episode 170 | The Half Way Point of 2022, Iggy Garcia TV Episode 169 | Phillip Cloudpiler Landis & Jonathan Wellamotkin Landis, Iggy Garcia LIVE Episode 167 My guest is AnnMarie Luna Buswell, Iggy Garcia LIVE Episode 166 The Animal Realm, Iggy Garcia LIVE Episode 165 The Return, Iggy Garcia LIVE Episode 164 Recap of 2021. If Splunk's board and senior management believe that improving revenue and ARR (annual recurring revenue) growth as well as FCF (free cash flow) generation will happen during 2023, such an offer would appear low.". It was down 15% this year through the close. As I see it, Splunks presence in the security and observability space would be an incredibly attractive addition to Ciscos existing solutions, while adding a substantial cloud and recurring revenue-based business to the companys top line, said Daniel Newman, Futurums principal analyst. Copyright "Splunk has struggled with a combination of sales execution issues, lack of visibility amid an elongated cloud business model transition, and uncertainty at the helm with the company still actively searching for a new (CEO). Continue reading your article witha WSJ membership, Copyright 2022 Dow Jones & Company, Inc. All Rights Reserved. The board named Chairman Graham Smith as interim CEO and kicked off a search for a permanent replacement. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. While Meraki, Sourcefire, OpenDNS, Acacia have been well-executed acquisitions, AppDynamics has stood out as a pure-play software acquisition that has not performed well (with AppDynamics revenue down Y/Y in some recent quarters).. All times are ET. Cisco has long grown its business through acquisitions and in 2020 it bought networking monitoring company ThousandEyes for about $1 billion. Splunk said it does not comment on rumors or speculation. A Splunk deal would have been Ciscos largest acquisition yet, well above its takeover of Scientific Atlanta for about $7 billion in 2006. However, Splunks investors reacted positively to the news, with the companys stock price jumping 9% on the morning of February 14. REUTERS/Sergio Perez/File Photo. Nasdaq Revenue from subscriptions and software will reach 50% of Ciscos total by fiscal 2025, the company predicted in September. If youre curious about my background and how I came to do what I do, you can visit my about page. Ciscos acquisition offer shows us that cybersecurity will continue to be a key driver of mergers and acquisitions (M&A) in 2022. That valued the company at $23 billion, Raymond James analyst Adam Tindle said in a note. 2022 CNBC LLC. All rights reserved. Morgan Stanley analyst Meta Marshall believes that a Splunk buyout by Cisco would be strategically positive. The analyst adds that an ability to package Splunks leading Security analytics and ITOM solutions with other security offerings, further optimize distribution and pricing, could present very interesting potential M&A synergies for Cisco.. As for Cisco, Newman said the company made significant investments in cloud, software, and other higher-margin offerings, and the Splunk deal could help it achieve further growth in these bitterly-contested verticals. It has more recently sought to shift toward cloud computing and catch up with its competitors, like Datadog, that started their business in the cloud.
All rights reserved. Recognizing chart patterns is one key to the investment guidelines. Use code IBD. CSCO stock reports earnings on Wednesday. Even though its cloud revenues zoomed 77% in the year, its overall revenue was down 5% year-over-year, and its operating cash flow was negative $191 million with free cash flow of negative $228 million. The acquisition by Cisco could provide much-needed breathing space for the company to invest heavily in cloud, IT security, and data observability platforms and digital transformation initiatives in the year ahead. If the deal goes through, Cisco is expected to gain a dominant position in the enterprise security market, she said. Distribution and use of this material are governed by our Subscriber Agreement and by copyright law. 7/21/2022 Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. According to The Wall Street Journal, which broke the news on February 11, the two companies havent gotten around to discussing the acquisition yet. Shares of the software solutions company are up over 8% after it was reported that Cisco (NASDAQ:CSCO) had made an offer to acquire Splunk. Cisco made a $20 billion-plus offer to acquire Splunk. Cisco and Splunk representatives declined to comment. Reporting by Jahnavi Nidumolu and Juby Babu in Bengaluru; Editing by Leslie Adler, Richard Chang and Sandra Maler, China says U.S.-led chip alliance should not harm global market.
BREAKING: Tech Futures Fall As Snap, Intuitive Surgical Dive On Earnings. Cisco has a reported market capitalization of around $227.33billion. Like us on Facebook atwww.facebook.com/TheSunUSand follow us from our main Twitter account at@TheSunUS, 'Cannon of fire' solar storm due to hit Earth TODAY could spark radio blackouts, Facebook makes huge change so you ONLY see posts from friends you care about, Nasa James Webb Space Telescope 'permanently damaged' by rogue space debris, Everything to know about viral TikTok nurse Erika Diaz, 2020 THE SUN, US, INC. ALL RIGHTS RESERVED | TERMS OF USE | PRIVACY | YOUR AD CHOICES | SITEMAP, Cisco reportedly made a takeover offer for Splunk, Cisco is a leading technology corporation. In this episode I will speak about our destiny and how to be spiritual in hard times. A man passes under a Cisco logo at the Mobile World Congress in Barcelona, Spain February 25, 2019. This growth and its corner on a key market segment continue to make Splunk an attractive acquisition for Cisco, he said. Head over to the Spiceworks Community to find answers. Copyright 2000-2022 IGNACIO GARCIA, LLC.All rights reserved Web master Iggy Garciamandriotti@yahoo.com Columbus, Ohio Last modified May, 2021 Hosted by GVO, USC TITLE 42 CHAPTER 21B 2000BB1 USC TITLE 42 CHAPTER 21C 2000CC IRS PUBLICATION 517. That sent shares of Splunk up as much as 16% in late trading Friday. Splunk has a market capitalization of around $18.2billion, Investing.com reports. According to Newman, Splunk underwent a rough phase in 2021, losing its CEO and witnessing its stock price taking a tumble, but the company still packs a punch and offers a lot of value to potential buyers. "The story at Splunk has been one with many twists and turns over the past several quarters," Jefferies analyst Brent Thill said in his note to clients. Founded in October of 2003, Splunk is a software company based in San Francisco. Stay away from the FAANG, but remain invested in tech: Strategist, Darren Sissons discusses the FAANG stocks and Microsoft, Amazon breakout would be a 'really big deal': Fairlead Strategies founder Katie Stockton, Investors to see 'nothing but blowout earnings' for this quarter: Belpointe's David Nelson, McCreath: April CPI data spooks equity markets, Bears think tech earnings aren't sustainable but fundamentals are strong: Wedbush Securities' Ives. We will be traveling to Peru: Ancient Land of Mystery.Click Here for info about our trip to Machu Picchu & The Jungle. The offer was made recently and the companies arent currently in active talks, some of the people said. The biggest software acquisition by Cisco was AppDynamics for $3.7 billion in 2017. In addition, it's undergoing a transition to a software-as-a-service business model. Twitter lawyer: No 'exit ramp' for Elon Musk out of takeover deal, Metaverse expert predicts the future of the internet, How these satellites are helping fight methane pollution, Hasbro 3D-prints your face on its action figure toys, See the first images taken by the James Webb Space Telescope, Art critic Jerry Saltz on DALL-E 2: 'This is pretty crapola illustration', This is how data collected from fertility apps could be used to prosecute abortion, See a simulation of AI technology being used to prevent a mass shooting, Amazon introduces new warehouse robot, says it's not replacing human workers, This mobile robot can reserve parking spots and then charge your EV, Internet Explorer is no more. San Jose, CA-headquartered Cisco Systems, Inc. has reportedly offered $20 billion-plus to acquire data analytics giant Splunk. Splunk stock popped 9.1% to close at 124.97 on the stock market today.
All Rights Reserved. Splunk, whose stock price has fallen by 30 percent since its chief executive, Doug Merritt, unexpectedly stepped down in November, has a market capitalization of around $18 billion. Splunk said it does not comment on rumors or speculation. Meanwhile, Chief Executive Doug Merritt stepped down in November and the role is being filled temporarily by board Chairman Graham Smith.
Some specific tech markets Cisco specializes in include: Internet of Things, videoconferencing, domain security, Webex, OpenDNS, Jabber, Duo Security, and Jasper. Splunk's software has gained popularity as a tool for spotting security threats.
Join WSJ and watch techs biggest players break techs biggest news. Cisco Systems has held acquisition talks with Splunk, whose software mines data for insights, including security threats. Copyright 2022 Dow Jones & Company, Inc. All Rights Reserved. Is Cisco Stock A Buy Or Sell As Investors Mull Possible Large Acquisition? The company gave a lackluster forecast for revenue in November, hurt by a shortage of components. We've detected you are on Internet Explorer. Ciscos planned acquisition of Splunk has received favorable reactions from industry analysts. The 5 Worst Dow Jones Stocks So Far In 2022, Stock Market Gains As Investors Anxiously Await Fed's Rate Decision; Nasdaq Leads Indexes, Stock Market Rally Under Pressure As Walmart, Target Crash On Inflation Woes: Weekly Review, Dow Jones Leads Stock Market Lower After Cisco Dives On Weak Guidance, Dow Jones Falls As Cisco Dives; Warren Buffett Stock Takes Key Level; Google Stock Slips Amid This Threat, Cisco Stock Plunges On Weak Guidance As China Lockdown Impacts Supply Chain, Stock Market Trades Mixed As More Retail Earnings Reports Arrive; Cisco Plunges On Guidance. If Splunk accepts Ciscos offer, it would be Ciscos largest buyout since its acquisition of Scientific Atlanta in 2005. Distribution and use of this material are governed by Microsoft said last month that it was planning to acquire the video game company Activision Blizzard for nearly $70 billion, and Salesforce acquired the workplace software company Slack last year for $27.7 billion. Financial Market Data powered by FinancialContent Services, Inc. All rights reserved. Splunk stock reports earnings on March 2. Updated 4:56 PM ET, Sat February 12, 2022. As I see it, Splunks presence in the security and observability space would be an incredibly attractive addition to Ciscos existing solutions, while adding a substantial cloud and recurring revenue-based business to the companys top line, said Daniel Newman, Futurums principal analyst. In November last year, San Francisco-based Splunk announced Doug Merritt has stepped down as its chief executive officer (CEO) and that the company's chair, Graham Smith, would be the interim CEO. Our Standards: The Thomson Reuters Trust Principles. News Corp is a global, diversified media and information services company focused on creating and distributing authoritative and engaging content and other products and services. Splunks stock price fell 20% over a six-month period, and the company. As a subscriber, you have 10 gift articles to give each month. Special webinar sale: Join IBD Digital and get 2 months of access for $12thats over $57 off! were rising sharply Monday on a report that This article is part of our Daily Business Briefing. An error has occurred, please try again later. The Silicon Valley giant has traditionally generated the bulk of its revenue from equipment that forms the backbone of computer networks, but thats been changing. 1125 N. Charles St, Baltimore, MD 21201. The company is set to report earnings on March 2. The positive reaction from investors has some logic to it. The stock fell 18% on Nov. 15, after the company said CEO Doug Merritt, who had been running the company for six years, would be stepping down immediately. Cisco Has Discussed Deal for Software Company Splunk, https://www.nytimes.com/2022/02/11/technology/cisco-splunk.html. However, Splunks investors reacted positively to the news, with the companys stock price jumping 9% on the morning of February 14. She, however, added a word of caution. In 2021, $2.6 trillion of merger deals were announced, up 76% year-over-year. Most stock quote data provided by BATS. Cisco (ticker: CSCO) made the offer recently and the companies are not in active talks, The Wall Street Journal reported on Friday, citing people familiar with the matter. All quotes delayed a minimum of 15 minutes. Meanwhile, Cisco stock fell 1.3% to 53.18. Disclaimer. Splunk was founded in 2003 as a software data analytics and monitoring company. Will the acquisition of Splunk change things? Our robust order strength, record backlog and double-digit growth in annual recurring revenue position us well to deliver growth, said Chuck Robbins, chair and CEO of Cisco. SPLK Stock Alert: Is Cisco About to Buy Splunk? My family immigrated to the USA in the late 60s. By multiplying the price of a stock by its total number of shares, one can find the market cap of a company. With roots in data analytics software, Splunk has expanded into security. Get market updates, educational videos, webinars, and stock analysis. Moreover, Splunk has a market capitalization of about $19 billion, which means that a $20 billion buyout would only imply a premium of roughly 3% from current prices. We are constantly evaluating potential opportunities. 1125 N. Charles St, Baltimore, MD 21201. Tech Salaries in 2022: Why the Six Figure Pay Makes Techies Feel Underpaid, How to Get Started With Kubernetes the Right Way: DevOps Experts Weigh In, Dealing with Post-Pandemic Burnout: Seven Tips for IT Pros to Overcome and Recover, 5 Ways Data Can Help Product Managers Overcome Imposter Syndrome, 4 Reasons You Dont Need To Spend on a Strategy Consultant, Three Drawbacks of a Long-term Hybrid IT Model, Winds of Change? Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. Shares of Doug Merritt, Splunk's CEO for the past six years, stepped down in November. Founded on December 10, 1984, Cisco is a leading technology corporation with a headquarters in San Jose, California. Splunk may prefer posting a solid quarter or two to drive up its asking price, BMO Capital Markets analyst Keith Bachman said in a note to clients. Its chief executive, Chuck Robbins, told analysts in December that Cisco would continue to look for acquisitions in security. For more information, please visit: Browse an unrivalled portfolio of real-time and historical market data and insights from worldwide sources and experts. a 17% rise in net income and a 6% rise in revenue in Q2 2022 against Q2 2021. We continue to see incredibly strong demand across our portfolio, emphasizing the criticality and relevance of Ciscos innovation. The offer was made recently and the companies are not in active talks, the newspaper said, citing some of the sources. Ownership data provided by Refinitiv and Estimates data provided by FactSet. Cisco has sought to expand its security business while also selling data center networking equipment and Webex collaboration software. Even though its cloud revenues zoomed 77% in the year, its overall revenue was down 5% year-over-year, and its operating cash flow was negative $191 million with free cash flow of negative $228 million. The acquisition by Cisco could provide much-needed breathing space for the company to invest heavily in cloud, IT security, and data observability platforms and digital transformation initiatives in the year ahead. At the peak of its after-hours move, Splunk was valued at more than $20 billion, up from $18.2 billion at the close of trading. Katie Roof, Liana Baker and Ian King, Bloomberg News. Splunk has been in the process of shifting toward providing cloud services to customers, and said in December that almost 37% of revenue in the latest quarter was tied to cloud usage. If the deal ends up happening, it will be Cisco's biggest acquisition to date. Ciscos offer comes when Splunk is actively hunting for a new CEO following former president and CEO Doug Merritts departure in November 2021. We want to hear from you. IBD offers a broad range of growth stock lists, such as Leaderboard. Get this delivered to your inbox, and more info about our products and services. With the Acquisition Bode Well for Cisco?, According to Futurum Research, the deal would be.
The companies are no longer in talks about a deal, and its unclear whether Cisco is still interested in Splunk, said the people, who asked not to be identified because the matter is private. The other half of Splunk's business in observability would be a natural complement to Cisco's existing monitoring solutions (AppDynamics) and could better position Cisco as an end-to-end platform to compete with rising stars such as CrowdStrike (CRWD), Datadog (DDOG) and others.". The Wall Street Journal previously reported on the discussions, saying that Cisco offered more than $20 billion for the software company. for further big-ticket mergers and acquisitions in the cybersecurity sector in the year ahead, especially in the behavioral analytics space. By 2025, the company wants to generate 50% of its revenue from subscription-based offerings. Sapana Maheria, practice head of Thematic Research at GlobalData, believes that if the acquisition goes through, it will bode well for further big-ticket mergers and acquisitions in the cybersecurity sector in the year ahead, especially in the behavioral analytics space. Authors may own the stocks they discuss. The ongoing business model transition and growing competition at Splunk could present additional challenges for Cisco if they pursued this acquisition. Article printed from InvestorPlace Media, https://investorplace.com/2022/02/splk-stock-alert-is-cisco-about-to-buy-splunk-9-things-to-know/. Shares of Splunk were rising sharply Monday on a report thatCisco Systems made a takeover offer of more than $20 billion for the data analytics software company. Cisco slipped in late trading, falling less than 1%. The deal, she said, will further strengthen Ciscos foothold in the security and analytics space, especially in Extended Detection and Response (XDR).. In November last year, San Francisco-based Splunk announced Doug Merritt had stepped down as its chief executive officer and the company's chair, Graham Smith, would be the interim CEO. When asked, representatives of Splunk and Cisco, In addition, the two companies already have a data-security partnership to enable. 2022 InvestorPlace Media, LLC. Leonard Bosack and Sandy Lerner came together to launch Cisco, opening to the pubic in 1990. Splunk stock jumped on Monday amid reports Cisco Systems (CSCO) made a $20 billion offer for the software company. Iggy Garcia LIVE | Episode 162 Spiritual Tune Up. Notice: Information contained herein is not and should not be construed as an offer, solicitation, or recommendation to buy or sell securities.
Find the best mutual funds, monthly performance reports and exclusive fund manager interviews and profiles. Our robust order strength, record backlog and double-digit growth in annual recurring revenue position us well to deliver growth, said Chuck Robbins, chair and CEO of Cisco. Reuters, the news and media division of Thomson Reuters, is the worlds largest multimedia news provider, reaching billions of people worldwide every day. A challenge for Cisco in its transformation is the heft of the current $50 billion revenue base focused primarily on networking equipment, making it mathematically difficult to find the subscription revenues to transform the business, she said. FOUNDED in 1984, Cisco System is one of the world's largest information technology companies. With Splunk technology, data is correlated in a simplified and searchable way; the software identifies data patterns, provides metrics, diagnoses problems and provides intelligence to further business operations. However, the two companies are not currently in active talks, so it seems that Cisco is simply putting an offer on the table. Cisco is working toward a shift to software and reoccurring revenue-based sales. Founded in 2003, the software solutions provider has a market capitalisation of $18.2 billion, according to Refinitiv Eikon data. The company has been pivoting to a recurring revenue model by shifting from traditional software licenses to cloud-based subscriptions while also steadily growing the customer base. For non-personal use or to order multiple copies, please contact Dow Jones Reprints at 1-800-843-0008 or visit www.djreprints.com. Technology has been a hotbed of mergers and acquisitions activity over the past year, as soaring stock prices have left companies flush with cash. Realtime quote and/or trade prices are not sourced from all markets. As I see it, Splunks presence in the security and observability space would be an incredibly attractive addition to Ciscos existing solutions, while adding a substantial cloud and recurring revenue-based business to the companys top line., In a note to investors, Morgan Stanley analyst Meta Marshall said the Splunk acquisition would help Cisco offer stiff competition to industry leaders in the cybersecurity space.