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Nortel: Dead Man Walking?
By Mark Evans | October 2, 2008
Here’s an interesting scenario: Nortel’s strategic direction is unwinding the company as opposed to becoming an enterprise player.
And here’s how it could pan out:
- Metro Ethernet network (MEN) business is sold for between $1-billion to $2-billion
- Wireless unit sold as Nortel gets out of the CDMA business while it still can
- Enterprise business is eventually sold as Nortel realizes it can’t effectively compete in a market dominated by Cisco.
If you don’t buy into this scenario, and believe that Nortel is intent on becoming an enterprise player, then explain Nortel’s strategic strengths.
In other words, you should buy enterprise gear from Nortel because [fill in the blank]?
With a lack of clarity about Nortel’s strategic direction, the conference call to discuss Nortel’s Q3 results should be fascinating.
Some of the questions that could be answered at that time are:
- Who’s acquired MEN, and how much did they pay?
- How many more jobs will be eliminated?
- What is Nortel’s new strategy?
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Topics: Executive Suite, M&A |