Nokia Denies Plan To Buy Juniper Networks

Nokia Denies Plan To Buy Juniper Networks
Hermann / Pixabay

Company buyouts are extremely important news — especially to investors. Any time the makeup of a company changes, the stability and path of both companies is called into question. While a buyout can often be a good things for both parties involved, it’s also entering into uncharted waters. There were information floating around the web that Nokia was looking to buy Juniper Networks after a report from CNBC. Nokia has since denied that claim, asserting that there are no current plans to acquire Juniper.

Juniper Networks Buyout Report

The internet was abuzz after CNBC published a report from a “reliable source” that suggested that a deal was in process that would combine Juniper’s multibillion-dollar network company with Nokia’s infrastructure. Despite the apparent inaccuracy of the report, the markets responded favorably as shares of Juniper climbed more than 2% in after-hours trading.

Juniper is based in California, and focuses on services like security and routing. Nokia is widely recognized for their mobile phones, but it has been a major player in the telecom equipment business since the 1880s. The company has since shifted focus to the Internet of Things, 5G, and the Cloud after a recent buy and sell by Microsoft.

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The uncertainty of whether or not the deal was legitimately occurring was further fueled by a Juniper spokesperson who declined to comment on the situation, while citing a policy against addressing rumors. Rather than outright declining that the deal was ongoing, the junior spokesperson made it seem as if behind-the-scenes negotiations between the two companies could be occurring — a notion that has since been debunked by Nokia.

The company has since released a statement, saying that “Nokia is not currently in talks with, nor is it preparing an offer for, Juniper Networks related to an acquisition of that company.”

That seems pretty cut and dry, and is solid evidence that the deal was never even on the table. It’s possible, however unlikely, that Nokia is being dishonest to avoid affecting the markets — and the noncommittal answer from Juniper still casts some doubt over this recent news. If Nokia were truly to acquire Juniper, the combination of Nokia’s solid technology with the existing Juniper network would likely lead to some great growth for both companies. And if the recent uptick in Juniper’s stock is any indication, it seems that investors are a fan of the buyout as well.

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