Rumor indicates Cisco is looking to buy Samsung's business network division
Cisco may be looking to boost its Asia-Pacific presence through the acquisition of Samsung's business networking division. According to The Korea Times, Cisco has twice approached Samsung about acquiring its network business division, but it has so far been rejected.
The Korea Times quoted "a person familiar with the matter" who noted Cisco had contacted Samsung several times about purchasing the division, but the bid was too low for Samsung to let the division go. But the anonymous source indicated Cisco is still interested in taking the division off of Samsung's hands.
Samsung isn't a key player in the networking business, but The Korea Times indicated its growth as an LTE supplier in India, as well as growth in other international markets. The company is successful in its home Korean market; and with the 2018 Winter Olympics coming up, Samsung is one vendor that could gain significant wins as Korea aims to roll out 5G wireless.
That would be attractive to companies like Cisco. Buying Samsung's networking division would immediately boost its presence in the Asia-Pacific market – not just in the telecommunications arena, but also within the enterprise space.
It could also provide Cisco with new opportunities to bring Samsung's technology to China, paving the way for greater competition with rival Huawei, which has been bolstering its North American presence and going head-to-head with Cisco and other major networking vendors.