$337.5 million.

As Mark Evans notes, that’s what you could buy Nortel for yesterday. The entire company.

When I worked for Nortel ten years ago that was what they would pay to acquire a small company. Now the company has essentially been mismanaged into the ground. Yet the executives have benefitted handsomely, often based on what appeared to be completely made up revenue numbers.

I was working for Bay Networks when Nortel bought them. Bay had about 8,000 employees to Cisco’s roughly 18,000, and they were doing about three times our revenue. The merged Bay-Nortel had about 90,000 employees, and Cisco was still beating us every time. I wondered at the time what all of those people did; I can see now that it was mostly nothing since they are somewhere south of 30,000 and the situation is pretty much the same.

Perhaps they’ll make a nice acquisition target for Cisco now, They they can keep the useful products and kill the rest. Then maybe my stock will be worth more than $10. And I don’t mean per share. The current executive team has failed miserably and should just voluntarily resign.


Powered by Bleezer

Leave a Reply