Inside the Nokia-Juniper Deal: Juniper’s Perspective
Juniper declined to comment on buyout rumors
In its initial report that a deal was in the making between Nokia (NOK) and Juniper Networks (JNPR), CNBC contacted Juniper to get its comment, and a spokesperson for the company declined to comment because of an internal policy against addressing market speculations or rumors. That was before Nokia came out to issue a statement denying that was in talks to acquire Juniper.
From the no-comment by Juniper and the denial by Nokia, there appear to be no active merger talks between the two companies right now. But in light of the market situation and the developments we’ve seen recently, ingredients seem to be there for Juniper to look for a strategic deal, such as combining with a telecom equipment vendor like Europe-based (EFA) Nokia.
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Some customers have turned into competitors
Companies like Juniper and Cisco Systems (CSCO), which sell gear that helps computers link to the Internet, are struggling for growth as some of their customers have resorted to building their own networking gears. As a result, the market is shrinking for Juniper and Cisco, whose revenues fell in the latest quarter.
Cisco collaborating with Ericsson
Cisco, which has deeper pockets than Juniper, has responded to this market shift in a number of ways, but most notably by entering strategic partnerships. Cisco is collaborating with Nokia rival Ericsson (ERIC) to navigate the changing world of network equipment. The companies have been reporting positive progress in their alliance.
If the Cisco-Ericsson alliance bears fruit, perhaps Juniper could gain some market advantage by tying up with a telecom equipment vendor like Nokia.