The first good (as I see it) news is that Cisco revealed a significant move with a $28 billion all-cash deal to acquire Splunk (btw making it Cisco's biggest acquisition to date).
Moreover, as you may remember, Splunk had scandal due to they continuously told investors that they are investing in marketing, hiring sales professionals, and soon will be profitable. And by August 2020 Splunk stock reached its peak of $200 per share.
Later, in December 2020, the company admitted that they actually “suspended investments in marketing” and “froze hiring“. As a result, Splunk suffered a hard miss in its third-quarter financial results. Quarterly revenues dropped 11% year-over-year, and net losses ballooned.
This led to investor outrage, with claims that the company provided false and misleading information and then the lawsuit was filed in December, 2020.
And finally, after three years, the situation has been resolved, and Splunk is now paying a settlement of $30M.
In short, I think things are looking up, especially with the Cisco acquisition. What's your take? Do you reckon Splunk will hit its peak in 2020 at $200? And do you think the deal will eventually go down?
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