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Today's report from Web Editor
Susan Rush
• Broadcom Buys SiByte
• AT&T And WorldGate Deploy ITV
• 3Com Settles Suits
• Cisco Seals Supply Pact
• Broadband Briefs
Broadcom Buys SiByte Broadcom
moves one step closer to becoming a one-stop semiconductor shop with the
acquisition of processor chipmaker SiByte
Inc. The $2.07 billion stock deal will give Broadcom new high-speed
networking market products and expand its offerings for Internet services.
Under the terms of the deal, Broadcom will issue as many as
9.3 million shares of common stock in exchange for all outstanding shares of
SiByte's preferred and common stock. Initially, 5.6 million shares will be
released to SiByte shareholders, and if SiByte meets certain performance
goals, an additional 3.7 million shares will be issued.
Among Broadcom's most recent deals, are the acquisitions of
switching technology chipmaker Allayer
Communications, optical communications chipmaker NewPort
Communications, semiconductor company Silicon
Spice and Digital Furnace, a
supplier of communications algorithms and software for interactive services
over broadband networks.
Wall Street has embraced Broadcom's shopping spree over the
past year, with the company's shares nearly tripling during the last 12
months. Broadcom shares were trading at $218.94 during early morning
trading.
Related Stories:
Broadcom
Revs On Revenues, BroadbandWeek Direct, 10/19/00
Broadcom
Goes For Buy No. 10, BroadbandWeek Direct,
10/18/00
AT&T And WorldGate Deploy ITV
First Liberate Technologies,
now WorldGate...Microsoft suffers another
blow in the interactive television market as AT&T
Broadband teams with WorldGate to launch ITV services in Iowa and
Washington. The duo will offer email, interactive video content and
e-commerce applications over currently deployed set-top boxes.
While the deal is a score for WorldGate -- the company also
has deployment and investment deals with Aldephia
Communications Corp., Comcast Cable
Communications Inc., Cox Communications
and Charter Communications
-- it also might be considered
another slap at Microsoft. The software provider invested $5 billion in
AT&T in 1999 in return for AT&T's agreement to deploy Microsoft
interactive TV software in its digital set-top boxes. But the deal has been
plagued by Microsoft delays. AT&T does not seem to have the patience to
let the interactive market pass it by, while it waits for Microsoft.
Although AT&T is moving forward with its interactive plans however it
can, it remains committed to working with Microsoft to deploy its
interactive TV software for cable. "We are still committed to a trial
[using Microsoft's technology] early next year," says Sarah Duisik, a
spokeswoman for AT&T Broadband.
Related Stories:
AT&T
Tests Interactive TV, BroadbandWeek Direct, 9/21/00
Move
Over Microsoft, Here Comes Liberate?, BroadbandWeek Direct, 8/31/00
3Com Settles Suits
3Com Corp. forks over $259
million in cash to settle two class-action lawsuits alleging the
computer-networking company misled investors about its 1997 acquisition of
modem maker US Robotics Corp. Both
suits accused 3Com of wrongdoing, including stock price manipulation, lack
of disclosure about US Robotics' financial state and insider trading.
In agreeing to the terms of the settlement, 3Com did not
admit any wrongdoing. "This now closes the book on all outstanding
issues related to 3Com's acquisition of US Robotics," says Mark
Michael, 3Com's senior vice president and general counsel.
In March, 3Com announced plans to refocus its business by
phasing out the main business it acquired from US Robotics, dial-up modems,
and concentrate on high-growth areas, including broadband access, IP
telephony, wireless access and Web-based systems. Last month, 3Com
introduced Audrey, a Web-based appliance, which provides one-touch access to
e-mail, Internet channels, a household calendar, and Palm HotSync technology.
Audrey is the first member of an "Ergo" Internet appliance
"family" 3Com is developing.
Related Stories:
Introducing
Audrey, BroadbandWeek Direct, 10/17/00
3Com
Posts Minimal Loss, BroadbandWeek Direct, 9/27/00
Cisco Seals Supply Pact
The optical transport market is big business, and Cisco
Systems wants to stay in the game. The network equipment provider inked
a $150 million deal to supply Cambrian
Communications optical equipment for its fiber rich metro and long-haul
network, in an effort to boost its market status. Cisco only holds 6 percent
of the market, compared to rival Nortel
Networks' 38 percent. Optical transport is expected to become a $29.3
billion market next year, according to a new report from RHK
Inc.
The deal with Cambrian will mark the first use of Cisco's
Wavelength Router in a network. The fully implemented network, which will
connect New York, Philadelphia, Baltimore and Washington, D.C., will also
make use of Cisco's metropolitan dense wavelength-division multiplexing
system, optical transport platforms and switches.
Cisco is set to release its quarterly earnings at the close
of the market today. Analysts and investors alike are anxiously awaiting the
report to see if Cisco can maintain its current growth streak and meet
analysts' expectations. Many fear, however, that the company may fall victim
to flagging sales in the network equipment arena. Tune in tomorrow.
Related Stories:
Chill
Wind Blows For Some Broadband Stalwarts, Broadband Week, 11/00
Cisco
Acquires CAIS Software, BroadbandWeek Direct, 10/20/00
Broadband Briefs:
- Polycom Inc.
and Avaya ink a co-development deal for
voice over DSL. Polycom's NetEngine Integrated Access Devices will be
integrated Avaya's advanced communications system.
- Sprint PCS
and SolidStreaming ink a deal to
begin testing wireless multimedia streaming services over second-generation
wireless devices. The trial is set for later this year.
- chello broadband launches
its high-speed Internet access services in Central Europe. Hungary is the
tenth country to receive the chello service.
-
Nortel Networks introduces a certification program for optical Internet
professionals. The new program is designed to certify information technologists
and networking professionals in both enterprise and service.
- Decibel
Products unveils a new line of Datenna wireless broadband antennas. The
antennas are designed for wireless data and voice applications in the 2.1 to
5.8 GHz range.
- Wireless broadband provider Dotcast
Inc. secures additional funding for its national network. The company has
raised $80 million to date.
- Flexion Systems
and Convergent Networks enter an
agreement to jointly market and sell next-generation broadband access
solutions. Terms of the deal were not disclosed.
- Kenetec Inc.
establishes an industry initiative to define and establish infrastructure
requirements for the multi-tenant unit broadband market. The Services-oriented
Building Area Network moves the last mile infrastructure into the buildings.
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