atcomsystems.ca/forum Forums General Telecom News Avaya considers buyout

Story here

Source: AP via Houston Cronicle

And here.

https://news.com.com/Avaya+reportedly+exploring+a+sale/2100-1036_3-6187036.html?tag=nefd.top

I guess if a merger goes through, the Partner ACS could be retired sooner than 2010.

After the sale, there won't be any independent companies left from the breakup of Ma Bell (excluding the 90% reconstituted at&t).

Why in the world can a company the size of Avaya who is a market leader with a house hold name and reputation not make it in the market?

We have been an ATT/Lucent/Avaya shop for 14 years. I'd hate to see the change, especially to a die hard competitor. Having a variety of vendor options is best for the market place and best for the customer! This is the first I've heard about this and the whole thing does not make me happy!

I know that Avaya has been on a phone calling campaign trying to drum up more business out of it's current customers. Avaya handed us off to Authorized Business Partners yet lately have been calling asking if they can assist the BP by helping us directly. Hmmm... I'm sure times are tough but if they'd bring some pricing down, companies like mine would buy more bells and whistles.

Please keep this thread posted if you hear anything else. Thanks! Rhonda

Well Rhonda, the only thing I can tell you is what the old AT&T told me many years ago when they were abandoning market share. I was told it wasn't because they weren't making money, they just weren't making enough money. I chalk it up to corporate greed, (meaning those at the top) but I may be wrong.

True. It's all about the dollars and cents. Not that they aren't making them. They just aren't making enough to keep the investors happy during these turbulent "merger/accquisition mania" times. Most investors aren't greedy people, just retirees or folks just trying to make some extra money to offset their living expenses.

When AT&T was broken up through the divestiture, AT&T's stock was worth, well let's just say $300.00 per share. Investors were offered the option to transfer their existing shares to one company or the many others that were part of AT&T. They could split their existing stock value to several different Bell spin-offs and most did just that.

Many stayed with AT&T, but when they spun off the equipment division to Lucent, people again were offered the opportunity to transfer some or all of their stock over there. Then when Lucent spun off Avaya, many did the same thing. Now, Avaya isn't able to produce the returns that Ma Bell did thirty years ago and none of them are earning the original value. I have not looked recently, but I am confident that Avaya isn't trading for the original $300.00 per share, so Avaya has to do whatever it takes to keep investors from pulling their cash out.

The bottom line is that AT&T is no longer the massive company that it was, so investors had to transfer their pre-divestiture investments to the appropriate Bell company or equipment spin-off company that appeared to be the most healthy. There were over a dozen to choose from; Indiana Bell, Bell of PA, you name it. That was a job for the stock brokers and some people ended up losing fortunes as a result by picking the wrong one.

The investors are seeking other places to invest their money to get better dividends. This means that Avaya shareholders are cashing out and investing in Avaya's competitors. The stock market is brutal and doesn't leave much room for anyone with a heart or patience. It's all about the Ben Franklins.

So, what do you all think would happen, if say...Cisco was to aquire Avaya?

I cannot even think about that scenario... but I am interested in what would happen. I'm just about to upgrade my Avaya and this will make a difference whether I go for 24, 36 or 48 month contract terms. I also wonder what would happen to all of the Business Partners that Avaya has contracted with.

Maybe it's just my unwillingness to change so often but I sure wish some part of the market would stay stable for more then a couple years at a time.

Rhonda, Check out Mitel. (I'm assuming you are using a Definity, or whatever they've renamed it) John C.

Rhonda, why not use a third party company for the maintenance contract? WMA, offers the same monitoring that Avaya uses...just a thought...maybe a reason for a new topic...

And how many stations? We have been coming across MANY systems that Avaya sold, for 40-50 users, and threw in a Definity. We have sold them IPO, because the price on a new IPO, is cheaper per month than they are paying in Maint.