Top Calls: Cisco to Buy Splunk For $28B

The transcript discusses Cisco's acquisition of Splunk, highlighting the strategic importance of the deal for Cisco's security business. It explores the potential impact on Cisco's image, financial implications, and the valuation of the $28 billion deal. The discussion also covers the integration challenges and regulatory considerations, emphasizing the complementary nature of the acquisition and the absence of significant antitrust hurdles.

What is the primary strategic focus of Cisco in acquiring Splunk?

• Expanding its networking business

• Enhancing its security offerings

• Entering the consumer electronics market

• Developing new hardware products

How much revenue is expected to be added to Cisco's security business from the Splunk acquisition?

• $6 billion

• $4 billion

• $2 billion

• $8 billion

What is the valuation of the Cisco-Splunk deal based on ARR and revenue multiples?

• 3 times ARR, 4 times revenues

• 6 times ARR, 7 times revenues

• 8 times ARR, 9 times revenues

• 5 times ARR, 6 times revenues

What is a potential regulatory advantage of the Cisco-Splunk deal?

• Strong presence in consumer electronics

• No product overlap between the companies

• Significant market share in Asia

• No need for European Union approval

Why might the Cisco-Splunk deal not face significant regulatory hurdles?

• It involves a large overlap in product lines

• It requires approval from multiple countries

• It is a complementary deal with no product overlap

• It significantly reduces competition in the market