Cisco (CSCO) is buying cybersecurity firm Splunk (SPLK) in a deal valued at around $28 billion. Cisco says the deal will "accelerate" the company's "business transformation" to becoming one with more recurring revenue.
Cisco aims to venture further into the AI market through the deal. According to CFO Scott Herren, "there's also an opportunity for us to build AI into our products and to enable our customers to leverage AI, and that's the real opportunity here," as Splunk's data source combined with Cisco's "security telemetry" presents a potential synergy.
Yahoo Finance Executive Editor Brian Sozzi interviews Cisco's CFO, Scott Herren, to discuss the details of the Splunk deal, Cisco's objectives in acquiring the company, and their confidence in the acquisition being an excellent match.
