Cisco makes 2 big acquisitions to take on Zoom

Zoom has been eating Webex's lunch. Now Cisco is fighting back.

| More on:
Person engaged in a zoom meeting on laptop computer

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Cisco Systems Inc (NASDAQ: CSCO) announced on Monday that it is making two acquisitions to help improve the functionality of its WebEx videoconferencing, collaboration, and customer service platform. The networking giant is paying an undisclosed sum to acquire audience interaction platform Slido. The technology company provides tools that help moderate large groups, and "enables real-time feedback and insight before, during and after any meeting." Slido has features that allow viewers and meeting participants to ask questions, answer polls, and participate in quizzes, among others. The Motley Fool regularly uses Slido for its events. 

Slido boasts over 7 million participants each month and will continue to be available for use by competitors. "Cisco understands the value in continuing Slido as a stand-alone product and building great integrations with other virtual meeting and presentation platforms like [Microsoft (NASDAQ: MSFT)] Teams, Zoom (NASDAQ: ZM) and [Alphabet's (NASDAQ: GOOGL) (NASDAQ: GOOG)] Google Meet," said Juraj Pal, Slido's product head. 

The tech giant also revealed plans to acquire IMImobile, a cloud communications software and services company, for roughly $730 million. IMImobile allows organizations to communicate with their customers across various channels, including social media, messaging, and voice. The company will become part of WebEx to further Cisco's contact center-as-a-service (CCaaS) platform. The company will use the platform's omnichannel capability to allow businesses to better connect with their customers.

Zoom has become the de facto industry standard for video conferencing since the rise of the pandemic earlier this year. In the third quarter, its revenue grew 367% year over year. At the same time, the number of customers contributing $100,000 or more in trailing-12-month revenue grew 136%, while the number of customers with more than 10 employees grew 485%. This marked the third consecutive quarter of triple-digit revenue growth for Zoom, eating into Cisco's market opportunity.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Danny Vena owns shares of Alphabet (A shares), Microsoft, and Zoom Video Communications. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Teresa Kersten, an employee of LinkedIn, a Microsoft subsidiary, is a member of The Motley Fool’s board of directors. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of and recommends Alphabet (A shares), Alphabet (C shares), Microsoft, and Zoom Video Communications. The Motley Fool Australia has recommended Alphabet (A shares), Alphabet (C shares), and Zoom Video Communications. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on International Stock News

Beautiful holiday photo showing two deck chairs close-up with people sitting in them enjoying the bright blue ocean and island view while sipping champagne and enjoying the good life thanks to Pilbara Minerals share price gains in recent times
International Stock News

Billionaire Ray Dalio sold Nvidia stock. Should you follow?

Billionaire Ray Dalio and his firm made an interesting move during the third quarter. They sold Nvidia stock. Should you…

Read more »

A man looking at his laptop and thinking.
International Stock News

Why Alphabet stock was sliding today

Let's take a look.

Read more »

A man looking at his laptop and thinking.
International Stock News

Nvidia's stock was down despite its amazing earnings. Here's what history says is coming next

Although it might seem to defy logic, it's not an uncommon phenomenon.

Read more »

A woman holds a soldering tool as she sits in front of a computer screen while working on the manufacturing of technology equipment in a laboratory environment.
International Stock News

Nvidia share price slips despite 94% revenue growth

Q3 earnings beat expectations, but what about guidance?

Read more »

high, climbing, record high
International Stock News

Could the S&P 500 Index hit 6,500 by the end of 2025?

Could the index climb higher?

Read more »

a small child holds his chin with his head on the side in a serious thinking pose against a background of graphic question marks and a yellow lightbulb.
International Stock News

Is it too late to buy Nvidia shares?

Is Nvidia stock a buy ahead of its third-quarter earnings report tomorrow?

Read more »

a group of people stand examining a large glowing cystral ball held in the hands of one of the group members while the others regard it with various expressions of wonder, curiousity and scepticism.
International Stock News

Here's what to expect from Nvidia on November 20

Can Nvidia score another win?

Read more »

Two people lazing in deck chairs on a beautiful sandy beach through their hands up in the air.
International Stock News

2 no-brainer Warren Buffett stocks to buy right now

While replicating Buffett's success isn't possible, there are a handful of his investments that are no-brainer buys.

Read more »