RESEARCH TRIANGLE PARK – The Wall Street analyst went after Cisco CEO Chuck Robbins with a direct question about a possible acquisition of software giant Splunk – what he described aas the “$20 billion question.”
Robbins bobbed and weaved …
“Are you guys buying Splunk? And if not, what have been the internal considerations for not doing the deal?”
So asked Sami Badri of Credit Suisse in an earnings conference call Wednesday evening after Cisco (Nasdaq: CSCO) posted its quartertly financials.
- MORE COVERAGE: Read about Cisco’s earnings online.
“[F]rst of all, we don’t comment on rumors and speculations or stories. What I will tell you is that we are constantly evaluating potential opportunities. [CFO] Scott [Herren] and I were talking.
“And we think for every deal we do, we probably look at 10 to 15 companies. We base our decisions on, first and foremost, strategic fit; secondly, cultural fit; and equally as important, the financial and the valuation fit. And we are always disciplined, and we continue to focus on both inorganic and organic opportunities. But I will tell you that you should expect us to continue to be very, very disciplined as we go forward as well.”
Robbins has been very aggressive in reorganizing Cisco and making acquisitions since being named CEO seven years ago. The company employs thousands at its campus in RTP.
Reports about a possible deal for Splunk – which at $20 billion would be the largest deal in the company’s history – emerged last week.
Report: Cisco made $20B takeover offer for software maker Splunk
