Merger Mania

So, its all pretty widely known that Tandberg is in talks to be acquired.

http://www.reuters.com/article/mergersNews/idUSLD6502620080813

I've heard some strong minded Polycom folk actually think (or maybe want others to think) that Tandberg is the one shopping them selves out. (with the outrageous assumption that TAA is throwing in the towel). I think thats so far from the truth, its unbelievable. Cmon... TAA is taking market share daily from Polycom. Those in the lead, dont throw in the towel.

The truth is that its market consolidation time. The kings of voice need video as they've now all determined that end users are now ready for it. Several years of YouTube, Skype, and other applications have softened them up for the inevitability of having video right at their desk.

Tandberg will be purchased and merged into a voice provider. It could be several, but if you think of the players out there, I think the answer is obvious who it is.

I think that also puts others in play, such as Polycom. If one voice giant now has a fully integrated suite of video, the others will need it as well.

Nortel is already partnered up with Polycom and has large investments in demo facilities using Polycom RPX. But, Nortels balance sheet isnt rich enough to make this happen. It would have to be closer to a merger than a acquisition. I can't imagine Nortel wanting to do the Canada/USA split company again... remember when Nortel bought Bay Networks... what a mess.

Cisco does already have a small video conferencing portfolio... but they could certainly use the breadth of products that Polycom has. There is overlap in a few areas...but that fits well into how Cisco works.... let several development teams work on similiar technologies...then let the market decide who wins. Cisco traditionally likes buying small teams with ideas ready to pop.... Polycom would be more like a Scientific Atlantic acquisition as they are a more mature company... but, the plus is that Polycom is HQ'ed in the bay area, making a merger easy to pull off. (Polycom has one office right on First Street, a block from Tasman).

But..the question would be, what would derail the deal. Mike & Bob don't seem like they want to sell the company. I've heard through rumors that several companies have approached Polycom...including Cisco several years ago, but they deals never closed. I even heard about a deal with a Norwegian company (no, not TAA) coming close to buying PLCM prior. So, are Bob & Mike ready to sell? The recent actions to RIF 80 people across the company was obviously a move to improve EPS.

And what happens to some of the other players? Lifesize? Sony (Spire Global)? They certainly would have to change up their game to survive if the two largest players were merged into two telephony companies.

I've got a glass of Sauvignon Blanc and some popcorn popping and am ready to watch the show.