The Wainhouse Research Bulletin ONLINE NEWS AND VIEWS ON VISUAL COLLABORATION AND RICH MEDIA COMMUNICATIONS Not much product news this week, but we are expecting some dramatic announcements later this month from one big player in the videoconferencing product space and another in the audio/web services space. Stay tuned. As always, please feel free to forward this newsletter to your colleagues. SUBSCRIBE NOW! IT’S FREE! To be added to our automated email distribution list, simply visit www.wainhouse.com/bulletin. Andrew W. Davis,
[email protected] Wire One Set to Unload its Videoconferencing Equipment Division Wire One has entered into a definitive agreement to sell its videoconferencing reseller business to Gores Technology Group, the same company that bought a similar operation from Forgent six months ago. The transaction is valued a $23 to $25 million, including $22 million in much-needed cash. The sale price represents about 1/3 the revenue level of this operation. The Wire One operation includes equipment distribution, system design and engineering, installation, operation, and maintenance activities. Our understanding is that this business will continue to do business under the Wire One moniker, but be wholly owned by Gores, a private company. Remaining as a publicly held company and lead by Rich Reiss (see interview at end of this newsletter) will be a newly named company, almost certain to have the word Glowpoint in its name, that will focus exclusively on IP video network services. Here’s What I Think. You don’t have to be a genius to see that in tough times companies have to stick to their knitting, focus on their core competencies, etc.