SalesCrunch makes audacious $1 bid for Cisco's WebEx
14 Mar 2012
SalesCrunch, a two year-old internet meeting platform, yesterday launched an unsolicited $1-bid for Cisco Systems' WebEx online videoconferencing unit, which it had acquired for $3.2 billion in 2007.
The two year-old start-up that is backed by Accel Partners, First Round Capital, Nextview Ventures and AOL Ventures, said that it would pay $1 plus a 15 per cent stake in itself to Cisco.
WebEx, which has more than 5 million customers, provides its customers a way to host online meetings, and share information among remote locations.
According to Sean Black, CEO, SalesCrunch, as WebEx was not part of Cisco's core business, shareholders would sooner than later force Cisco CEO John Chambers to shed or shut WebEx.
SalesCrunch is a competitor to WebEx and is known for its browser-based meetings that don't require a download or plug-in. It also documents details of who is using the service at any given time and even has records of meeting participants who may be secretly on e-mail.
Black said that an integration with his company would allow for better features and pricing of the product.
In the opening line of an online presentation on the offer, SalesCrunch quoted Morningstar analyst Grady Burkell, "What investors would like to see them (Cisco) more focussed on their core market like routers, switches and data centres."