US DOJ Sues To Block Hewlett Packard Enterprise's $14 Billion Juniper Deal (msn.com) 12
Longtime Slashdot reader nunya_bizns shares a report from Reuters: The U.S. Department of Justice has sued to block Hewlett Packard Enterprise's $14 billion deal to acquire networking gear maker Juniper Networks, arguing that it would stifle competition, according to a complaint filed on Thursday. The DOJ argued that the acquisition would eliminate competition and would lead to only two companies -- Cisco Systems and HPE -- controlling more than 70% of the U.S. market for networking equipment. More than a year ago, the server maker said that it would buy Juniper Networks for $14 billion in an all-cash deal, as it looks to spruce up its artificial intelligence offerings.
"Juniper has also introduced innovative tools that have materially decreased the cost of operating a wireless network for many customers. This competitive pressure has forced HPE to discount its offerings and invest in its own innovation," the DOJ said in its complaint. Stiff competition from Juniper forced HPE to sell its products at a discount and spend to introduce new features under the "Beat Mist" campaign, named after the networking gear company's rival product, the DOJ wrote. "Having failed to beat Mist on the merits, HPE changed tactics and in January 2024 opted to try to buy Juniper instead," the agency added.
"Juniper has also introduced innovative tools that have materially decreased the cost of operating a wireless network for many customers. This competitive pressure has forced HPE to discount its offerings and invest in its own innovation," the DOJ said in its complaint. Stiff competition from Juniper forced HPE to sell its products at a discount and spend to introduce new features under the "Beat Mist" campaign, named after the networking gear company's rival product, the DOJ wrote. "Having failed to beat Mist on the merits, HPE changed tactics and in January 2024 opted to try to buy Juniper instead," the agency added.
HPE did not contribute to Trump's fund, did it? (Score:4, Informative)
I believe HPE needs to contribut couple milions to some Trump's fund and the problem will be solved...
Re: (Score:2)
I believe HPE needs to contribut couple milions to some Trump's fund and the problem will be solved...
100% sincere question: which is the 'good outcome'?
Broadcom has been pretty terrible with their acquisitions, but the Biden administration happily let them buy VMWare and promptly screw everyone (except maybe Nutanix and Proxmox). Other notable acquisitions from the past four years were Discovery/Warner, Cisco/Splunk, Oracle/Cerner, and Chevron/Hess. Was it because all of these nine-figure and ten-figure acquisition folks knew to grease the palms before purchasing, and it's okay when the Biden administrati
I wonder of Trump is in the loop (Score:2)
This strikes me as a situation where Trump would say that the DOJ has no business preventing corporations from buying other corporations. I find it hard to believe that he wouldn't try to get the DOJ to back off - unless HP pissed him off by failing to take an oath of fealty, refusing to make a "donation", or something similar. Or unless one of his pet broligarchs wants to either buy or kill Juniper.
Re: (Score:2)
Why?
Donold really Made "Policy-making" Transparent Again, if you pay him a cool million or twenty five, he's all in for you.
Until your competitor tops your contribution.
It is really, really simple and predictable.
Consolidation (Score:2)
HPE already bought 3Com and Aruba. Broadcom bought Brocade. It seems like there is a lot of market consolidation in this space.
Re: (Score:2)
HPE is not the leader in any market.
Mergers only lead to consolidation if they are successful and the rate of startups and spin-offs is low.
Most mergers are mismanaged and result in a combined entity with a smaller combined market share.
Juniper had free updates HPE pay walled some of th (Score:2)
Juniper had free updates HPE pay walled some of them.
HP were once respected. (Score:1)
Re: (Score:3)
Carly. https://en.wikipedia.org/wiki/... [wikipedia.org]
This is bad... (Score:2)
This competitive pressure has forced HPE to discount its offerings and invest in its own innovation
...And we can't have that. I mean, dear God, won't somebody think of the investors!?