Cisco has made a $20 billion takeover offer to acquire Splunk. Currently, talks are said to be no longer active.
According to the WSJ, Cisco has set its sights on Splunk with a $20 billion takeover offer. That offer is just over the market value of Splunk which is worth about $18 billion. Internal talks have taken place, but today everything is at a standstill, according to the newspaper.
After the news leaked out, Splunk’s stock market value rose 13 percent. Cisco’s value remained untouched.
Splunk software allows organizations to search, monitor and analyze data logs (machine-generated data). The company took another 18 percent hit in the stock market last November when longtime CEO Doug Merritt announced his departure.
Last quarter Splunk reported $100 million in revenue, but operating expenses were $180 million. The loss last quarter was $120 million.
Cisco reports its quarterly earnings on Feb. 16, Splunk on March 2. Wait and see if any news comes out during either time.