Today, SalesCrunch publicly disclosed its unsolicited -- what some would call outrageous, low-ball -- offer for WebEx. The online communications platform startup would pay Cisco Systems one dollar plus a 15-percent stake. Essentially, SalesCrunch offers nothing for WebEx, and really asks the tech giant to pay for the privilege of unloading the online-collaboration suite.
Cisco acquired WebEx for $3.2 billion in 2007. A single dollar might as well be nothing. But it's more than that. SalesCrunch wants WebEx assets to build out its own platform, and, of course, the customers. Cisco's involvement could instill confidence, and the bold play for WebEx demonstrate SalesCrunch's hunger to succeed by thinking outside the box. The 15-percent stake could assist the startup winning new rounds of funding or enticing new investors -- hence the concept asking the communications giant to pay SalesCrunch to take on the business.
SalesCrunch CEO Sean Black made a tender offer, meaning the company is interested in purchasing Cisco's shares of the company. "WebEx has failed to innovate in 7+ years," SalesCrunch said in a public statement, noting "customers are looking for a better solution, and it's not too late to give it to them".
The unsolicited offer generated quite a buzz on Twitter, with many followers complementing @SalesCrunch for its marketing effort and plea to Cisco shareholders. Others viewed the offer as a publicity stunt.
But Black claims the $1 cash offer isn't a publicity stunt, believing Cisco's shareholders may ultimately pressure the company to shed WebEx.
A Cisco spokesperson could see the offer no other way: "This is a cute publicity stunt from SalesCrunch, and we appreciate that they like our technology, but we have no intention of selling WebEx".
The offer is low-risk and possibly high rewards. SalesCrunch improves its visibility, which, again, could help securing additional funding while it builds out technology and up a customer base.
WebEx provides more than 5 million customers the ability to host online meetings, and share information easily among remote locations. Originally designed to help Cisco expand from routers and networking hardware, focus on video teleconferencing has greatly reduced. Cisco CEO John Chambers is under pressure to prioritize the company's core products after investor criticism.
It's rumored WebEx could be next on the Cisco chopping block, leaving customers to scramble to find new online communications platforms. However, Cisco previously said WebEx fits into the company's business collaboration efforts, though very little has been done with the once-promising conference platform.
Since a public memo disclosing the company's shakeup, Cisco shuttered the Flip video product line while also ending the Umi Telepresence video conferencing platform. In addition to ending several programs, Cisco laid off hundreds of employees as it looks to shrink operations.
A successful acquisition by SalesCrunch would aim to migrate current WebEx customers to the SalesCrunch platform as quickly and easily as possible. SalesCrunch offers a modern technology able to utilize Web 2.0, including online analytics and social networking integration, while WebEx cannot. If nothing else, SalesCrunch's offer may sway disappointed WebEx customers away from Cisco and towards SalesCrunch.
Knowing there is interest in WebEx, if Cisco does intend to shutter the brand, SalesCrunch will likely have to pay a modest sum that will be above $1.
SalesCrunch posted an online presentation highlighting their effort to acquire WebEx, available here.
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