Cisco buying tech company one day before IPO! And they overpaid!

Discussion in 'Wall St. News' started by S2007S, Jan 25, 2017.

  1. S2007S

    S2007S

    Yet another classic example of an old school tech company buying into the new wave of the hyped up tech world. Buying a company one day before its IPO at $3.7 billion!!! They were selling shares tomorrow valued at less than $2 billion....best bet for Cisco would have been to wait it out and scoop it up for a few hundred million than a few billion.....


    Cisco buys tech IPO candidate AppDynamics for $3.7 billion

    Cisco just snapped up AppDynamics for $3.7 billion, one day before the software developer was scheduled to sell shares to the public at a valuation of less than $2 billion.

    AppDynamics develops software to help companies ranging from Capital One Financial to Expedia monitor their mobile apps and websites for bugs and fix them before customers drop off.

    http://www.cnbc.com/2017/01/24/cisco-buys-tech-ipo-candidate-appdynamics-for-37-billion.html
     
  2. zdreg

    zdreg

    my question is did Wall Street purposely under-price the IPO?
     
  3. wintergasp

    wintergasp

    You clearly have no clue of how merchant banking works.

    Chambers, the CEO of Cisco, is paid 60m$ a year and you believe what... that he didn't know the IPO valued the company at 2 Bn ?
    Huh well thank god you're here, you should short cisco
     
  4. S2007S

    S2007S



    Ha-ha....if you only knew that chambers isn't CEO of Cisco any longer...