Close
  • Latest News
  • Big Data and Analytics
  • Cloud
  • Networking
  • Cybersecurity
  • Applications
  • IT Management
  • Storage
  • Sponsored
  • Mobile
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
Read Down
Sign in
Close
Welcome!Log into your account
Forgot your password?
Read Down
Password recovery
Recover your password
Close
Search
Logo
Logo
  • Latest News
  • Big Data and Analytics
  • Cloud
  • Networking
  • Cybersecurity
  • Applications
  • IT Management
  • Storage
  • Sponsored
  • Mobile
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
More
    Home Applications
    • Applications
    • Mobile
    • Networking

    Cisco Wins European Approval of $5 Billion NDS Group Buy

    By
    Jeff Burt
    -
    July 24, 2012
    Share
    Facebook
    Twitter
    Linkedin

      Cisco Systems€™ $5 billion purchase of video software developer NDS Group was approved by the European Commission, clearing the way for the networking company€™s largest acquisition since it bought telepresence vendor Tandberg in 2010 for $3.3 billion.

      The EC, the antitrust arm of the European Union, said in a statement issued July 24 that the deal would not unfairly tilt the pay-TV market in favor of Cisco to the disadvantage of either rivals or consumers.

      €œThe Commission’s investigation confirmed that the merged entity would continue to face competition from a number of strong competitors and that customers, namely pay-TV providers, would continue to have alternative suppliers in all markets concerned,€ the agency said in its statement.

      In reviewing the proposed acquisition, European regulators said they looked at the impact on competition in both the hardware space€”such as set-top boxes€”and software, including conditional access systems (CAS), digital rights management (DRM) software, middleware, applications like digital video recording, and home provisioning software.

      €œThere are only limited overlaps between the parties’ activities in relation to each of these hardware and software products at the worldwide level, and these overlaps are even smaller in the European Economic Area,€ the EC said.

      Cisco officials in March announced their intention to buy NDS, a British company partially owned by News Corp. that develops video software and security solutions to enable service providers and media companies to bring video to a host of devices, from traditional televisions and PCs to smartphones and tablets. NDS counts many major service providers and media companies€”including Cablevision and DirectTV€”as customers, both in the United States and in other countries.

      Analysts at the time applauded the deal, noting that it will help fuel Cisco€™s intent to become a stronger presence in the booming video market. NDS will help bolster the company€™s Videoscape service, which enables users to find and watch pay TV content on multiple end points.

      Cisco executives see video as a key growth opportunity that will not only add profits and revenue to the bottom line, but also soften any negative impacts from slowing revenue in the mature networking business. Video is one of several €œpillars€€”such as cloud and core networking€”that form the foundation of the company€™s plans going forward.

      Given that, analysts in March said the NDS acquisition makes sense.

      €œVideo has been one of the key pillars for Cisco,€ Zeus Kerravala, principal analyst for ZK Research, told eWEEK at the time. €œThis [deal] fits nicely with that.€

      Analysts with Jefferies & Co. also noted that NDS will enable Cisco to broaden its reach in video outside of North America and into fast-growing emerging markets.

      Cisco executives have said video will only grow in importance, and have predicted that within the next few years, video will account for 90 percent of all Internet traffic. By 2015, there will be 3 billion connected devices, from laptops to smartphones to tablets, according to the company€™s studies.

      €œVideo will be the new voice,€ Cisco CEO John Chambers said in March when discussing the NDS deal. €œIt will be pervasive, on any device €¦ any time.€

      The vendor has made significant investments in building up its capabilities around video, from buying set-top box maker Scientific-Atlanta in 2006 for $6.9 billion to the deal for Tandberg for $3.3 billion. Cisco also has made smaller deals, such as spending $99 million for video delivery software maker BNI Video.

      Jeff Burt
      Jeffrey Burt has been with eWEEK since 2000, covering an array of areas that includes servers, networking, PCs, processors, converged infrastructure, unified communications and the Internet of things.

      MOST POPULAR ARTICLES

      Big Data and Analytics

      Alteryx’s Suresh Vittal on the Democratization of...

      James Maguire - May 31, 2022 0
      I spoke with Suresh Vittal, Chief Product Officer at Alteryx, about the industry mega-shift toward making data analytics tools accessible to a company’s complete...
      Read more
      Cybersecurity

      Visa’s Michael Jabbara on Cybersecurity and Digital...

      James Maguire - May 17, 2022 0
      I spoke with Michael Jabbara, VP and Global Head of Fraud Services at Visa, about the cybersecurity technology used to ensure the safe transfer...
      Read more
      Applications

      Cisco’s Thimaya Subaiya on Customer Experience in...

      James Maguire - May 10, 2022 0
      I spoke with Thimaya Subaiya, SVP and GM of Global Customer Experience at Cisco, about the factors that create good customer experience – and...
      Read more
      Big Data and Analytics

      GoodData CEO Roman Stanek on Business Intelligence...

      James Maguire - May 4, 2022 0
      I spoke with Roman Stanek, CEO of GoodData, about business intelligence, data as a service, and the frustration that many executives have with data...
      Read more
      Cloud

      Yotascale CEO Asim Razzaq on Controlling Multicloud...

      James Maguire - May 5, 2022 0
      Asim Razzaq, CEO of Yotascale, provides guidance on understanding—and containing—the complex cost structure of multicloud computing. Among the topics we covered:  As you survey the...
      Read more
      Logo

      eWeek has the latest technology news and analysis, buying guides, and product reviews for IT professionals and technology buyers. The site’s focus is on innovative solutions and covering in-depth technical content. eWeek stays on the cutting edge of technology news and IT trends through interviews and expert analysis. Gain insight from top innovators and thought leaders in the fields of IT, business, enterprise software, startups, and more.

      Facebook
      Linkedin
      RSS
      Twitter
      Youtube

      Advertisers

      Advertise with TechnologyAdvice on eWeek and our other IT-focused platforms.

      Advertise with Us

      Menu

      • About eWeek
      • Subscribe to our Newsletter
      • Latest News

      Our Brands

      • Privacy Policy
      • Terms
      • About
      • Contact
      • Advertise
      • Sitemap
      • California – Do Not Sell My Information

      Property of TechnologyAdvice.
      © 2022 TechnologyAdvice. All Rights Reserved

      Advertiser Disclosure: Some of the products that appear on this site are from companies from which TechnologyAdvice receives compensation. This compensation may impact how and where products appear on this site including, for example, the order in which they appear. TechnologyAdvice does not include all companies or all types of products available in the marketplace.

      ×