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HP Announces $2.7bn Acquisition of 3Com
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HP has announced a $2.7 billion acquisition of networking company 3Com.
Despite yesterday being Veteran's Day, HP was busier than ever. At the end of the business day, the company announced plans to purchase networking company 3Com in a multi-billion dollar deal.
The deal, already approved by the board, will see HP acquire 3Com for $7.90 per share, or $2.7 billion and bring the two that little bit closer to networking competitor, Cisco.
CNet reports that Cisco released the following statement in response to the news:
"While Cisco has a healthy respect for all of our competitors, acquisitions in our industry only validate the fact that networking is becoming the platform for all forms of communications and IT. As the leader in the networking market, Cisco is very confident in our business strategy, commitment to product innovation and ability to provide strategic business value to our customers in a highly competitive marketplace."
The deal is expected to close in the first half of 2010.
Source : Tom's Hardware US
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CES 2007: VoodooPC introduces new Envy gaming notebook
Las Vegas (NV) - VoodooPC introduced its newest product, the Voodoo Envy HW:201 notebook PC, today at CES 2007. The Envy HW:201 notebook features two Nvidia GeForce Go 7950 GTX GPUs running in Nvidia SLI mode and AMD Turion 64 X2 dual-core mobile technology. The ENVY HW:201 lets users choose between two NVIDIA graphics cards - the NVIDIA GeForce Go 7950 GTX with 512 MB of RAM for gaming or the NVIDIA Quadro FX 2500M with 512 MB of RAM for workstation tasks. The HW:201 also features a 20.1" high-resolution screen, which VoodooPC says is the biggest notebook display on the market. VoodooPC, which is now part of Hewlett-Packard following last year's acquisition, demonstrated the new notebooks at its booth within the massive HP domain of the exhibit hall of the Las Vegas Convention Center. While I didn't get a chance to play any games on the Envy HW:201, I did have a chance to see how well the notebook displayed video on its large hi-resolution screen. The Envy HW:201 was playing "Pirates of the Caribbean: Dead Man's Chest," and the picture clarity was excellent. The ENVY HW:201, which measures 18.75" x 13.5" x 1.9", also boasts 320 GB of storage using two hard drives, as well as a Voodoo Envy webcam, Bluetooth and wireless A/B/G networking and the Voodoo Envy theater audio system. "We had this in our product roadmap prior to the HP acquisition," Rahul Sood, co-founder and chief technologist of VoodooPC. "We wanted to make a faster notebook with more power and storage for playing games and DVDs." Now that the acquisition has been completed, Sood says VoodooPC will take advantage of HP's technology, brain trust, and connections to make even more powerful and better designed notebooks. "Usually with notebook makers, you're stuck using the same parts as everyone else," Sood said. "That's not going to happen anymore. We're going to be able to leverage HP's technology. Plus, being part of HP has opened up some doors for us, so manufacturers are calling us now instead of us calling them. So we're going to create some deadly products very soon."
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Fast forward to November of 2007. AMD is in trouble and the natural call for Jen-Hsun Huang surfaced again. Approaching Ruiz and the gang with the attitude "what goes around, comes around" and "I want to buy you now" did not go well, we hear. But business is business and is never personal. There was no reason why the deal would not have gone through. All Nvidia needed was enough money to take the company AND the debt. A repeat of the 3dfx charade is not an option here. However, in order for that to happen, the only way to go was to get support from partners from AMD's eco-system and this is where the trouble apparently started. While Nvidia is achieving record success with sales, it has done so by weakening its partners. From a company that started selling GPUs with memory back in GeForce3 days (and threw Guillemot/Hercules out of the race), Nvidia turned into a company that now sells a complete card, and partners are nothing else but "sticker stampers". This crashed the profits of all the companies involved, and many disappeared. With Nvidia controlling the AIB market for both ATI and Nvidia products, Taiwan would rush into Intel's arms. Memories of what happened with 3dfx when an ex-Siemens CEO took over the company are still livid in the world of graphics card manufacturers. The second unfavorable factor is the debt-to-equity ratio. Nvidia has a lot of money in the bank, currently about $2.4 billion, but to eat up a company like AMD, it would have to cough up somewhere in tune of $10 billion, since AMD is $5.4 billion in debt. But with AMD on-board, any rumors that Nvidia is toast would be eliminated forever. Also, Intel would have to face Nvidia on almost every front of its businesses. Nvidia can easily diversify into a networking company (it bought a 3Com team ages ago, which is the reason for the brilliant "plug'n'play" connectivity in nForce chipsets), into a handheld company (APX 2500 is much more important than you might think at first), desktop platforms (Phenom+nForce+GeForce), mobile platforms (Turion+nForce+GeForce), workstation platforms (Opteron+nForce Pro+Quadro), server platforms (Opteron+nForce Pro+Tesla), HPC platforms (Opteron+nForce Pro+Tesla), etc. And, of course, with the recent purchase of Ageia, nothing would stop the company from implementing PhysX in every pore of its DNA. Sadly, Huang's fault is the fact that he believes in the value of a single company. Just like the company destroyed the 3dfx line-up and did not use the world's second IT brand (Voodoo, just after Pentium) to its full potential, we have no doubt that Nvidia would cannibalize ATI and basically screw up its chipset development, as well as the development of future Radeons. Instead of creating synergy, the company would probably lose valuable time in preparations for the arrival of Nehalem and Sandy Bridge from the CPU side, and Larrabee from the cGPU side.







3Com, I haven't heard much about that name since the days of 56k modems. I still have a 56k 3Com modem. Don't use it anymore obviously, but I still have it.
I suppose 3Com has been much busier in the corporate sector than in the commercial sector. How many network companies does this leave? HP/3Com, Cisco/Linksys, Netgear, and D-Link? Getting pretty scarce out there.
all depends on the market you're in. Cisco def has the most wide reaching product offering but there are specialized competitors as well.
i think this is great for HP as there commercial grade equipment is top notch. adding 3Com should only bring great things.
3com are the most rock solid nic cards, I have a PCI NIC from 3com which came in a PC I bought in 96 and I still use that sucka! Not the PC, the NIC card in another one I built in 2005
They did fade away into obscurity lately though, thought the company had already folded. Kinda sad to hear HP bought them but I guess it's the way of things these days... either die or get bought out.
Now who's gonna buy HP! I wonder how much it's worth
Now who's gonna buy HP! I wonder how much it's worth
Its current market capitalization is about $118 billion.
http://finance.yahoo.com/q?s=HPQ&d=t
If you would like to buy it, you would need to fork out way more (many people/companies probably value it much more than the current market price).
I hope they don't churn out 3com chips under the Compaq plant. This sounds like bad news to me. I think HP has some neat laptops these days but it is kind of questionable. My coworker had to return his HP i7 destkop twice and get a refund. They have good printers though.
I've been looking at those new i7 laptops HP have, I just would rather a cleaner look on the back without the big dorky HP logo on it.
@martel80
Wow! That's a lot! thanks for the info!
3com:
"We're slightly richer!" --Mr. Burns
hellwig, there are many more, here's a few:
Extreme, Juniper, Foundry, Allied Telesis, Corecess, Arris, and many more that I don't care to remember. This is peanuts compared to the big boys. That being Cisco, Extreme, Juniper, and Foundry.
In fact, here's a list on wiki:
http://en.wikipedia.org/wiki/Categ [...] _companies
And it doesn't seem complete to me for some reason....
Dude, you can't put Netgear and D-link in the same sentence with Cisco and 3Com. 3com is a serious network equipment provider who builds their own chips and designs their own stuff for. D-link and Netgear make cheapie gear for the average idiot.
I am still confused as to what HP stands to gain from this purchase. HP already makes their own network gear and it's not bad. I guess swallowing up a competitor helps them in market share.
Oh, michaelahess... You forgot about Nortel. They also own Netgear.
Maybe HP can return the 3COM name brand to it's former glory
Maybe HP routers and switches can stop being so shitty now.
+1 to bfstev!
HP has a history of buying troubled companies, i.e., Apollo, DEC, Gateway, EDS. This seems like a continuation of that strategy.
HP has a history of buying troubled companies, i.e... Gateway,... This seems like a continuation of that strategy.
WTF..... HP didn't buy Gateway.... Acer did! Welcome to 2007! Get out much??
I hope HP won't adopt the poor support 3com is known for! But I suppose it's a good thing to make a good business better!
At an IT meeting yesterday we were discussing some plans, and one of my collegues said the following : "With HP you have to look at the specs to know which layer 3 switch supports dhcp relay and stuff, but that's a minor inconvencience as it's much faster than a cisco model, and costs significantly less"
So I suppose HP growing more is a good thing. All our internal network is built on HP switches (4108 mostly), and I dare say it's rarely the network that steals our time.
3com are the most rock solid nic cards, I have a PCI NIC from 3com which came in a PC I bought in 96 and I still use that sucka! Not the PC, the NIC card in another one I built in 2005 They did fade away into obscurity lately though, thought the company had already folded. Kinda sad to hear HP bought them but I guess it's the way of things these days... either die or get bought out.
Their cards are rock solid, but their support rivals blizzard billing support for suckiness. Your card from '96 is probably a 3c905 in some variation right? Try using that in a windows vista, windows 2003, 2008 or windows 7 mashine! You'll find that they didn't even bother making drivers for any of those. And the 925 barely even worked when it was new, and hasn't really improved since.... I'm not so fond of 3com. Their managed switches were good once, but without staff to improve on the support you could've bought a cheap dlink instead and saved change.
3Com, I haven't heard much about that name since the days of 56k modems. I still have a 56k 3Com modem. Don't use it anymore obviously, but I still have it.
That would have been US Robotics, acquired by 3Com.
How many network companies does this leave? HP/3Com, Cisco/Linksys, Netgear, and D-Link? Getting pretty scarce out there.
Just if you use el-cheapo equipment (Cisco excluded)...
Dude, you can't put Netgear and D-link in the same sentence with Cisco and 3Com. 3com is a serious network equipment provider who builds their own chips and designs their own stuff for. D-link and Netgear make cheapie gear for the average idiot.
3com (one of the founders was the inventor of ethernet at Xerox PARC) did make their own HW and chips way ago, but used, e.g. relabeled Extreme Networks, for the higher-end stuff event back in the 90ies. Newer products are using just the ubiquitous broadcom/marvell/other chipsets. They may have been using lately even cheaper taiwanese - like realtek/icplus/davicom/tamarack/holtek/winbond/via/sis/whatever (Allied Telesyn/Telesis and SMC did) - hopefully not the cheapest chinese junk...
I am still confused as to what HP stands to gain from this purchase. HP already makes their own network gear and it's not bad. I guess swallowing up a competitor helps them in market share.
HP has a looong history of relabeling.
Maybe HP routers and switches can stop being so shitty now.
Or even more shitty, sold under the 3Com label... (see Cisco/Linksys, Nortel/Netgear)