Tuesday, April 03, 2007

Hit #154 (WebEx)

WebEx (WEBX) finally got acquired by Cisco for $3.2 billion in a cash deal. The offer of $57/share represents a gain of 164% over my average cost of $21.55.

This was one of my many tech buys in 2002-2003 after the tech bust. This offer from Cisco is frankly much higher than anything I had imagined for WebEx. Cisco is overpaying, but the deal could still be a transforming one for the buyer.

Cisco's own high-end video-conferencing solution released recently was very well received. WebEx will complement it on the lower-end.

Two other companies to watch in this sector are Polycom (PLCM) and Radvision (RVSN). I wouldn't recommend buying either one right now.

Previous hit - Dollar General(#153)


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