Cisco To Acquire Set-Top Leader Scientific-Atlanta

Cisco Systems Inc. agreed to buy Scientific-Atlanta Inc. for $6.9 billion, adding the second-largest U.S. maker of set-top boxes for cable television and tapping into the growing market for Internet TV.Cisco, based in San Jose, California, will pay $43 a share, the companies said today in a Business Wire statement. The offer is 3.7 percent higher than Lawrenceville, Georgia-based Scientific- Atlanta’s closing price yesterday.

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This would seem to give Cisco a leg-up on the race to grab the sofa surfer market.  S-A boxes currently provide hi-def, DVR, and a host of other features.  DVD burners are coming. The boxes are networkable and Cisco has Linksys.  It isn’t too much of a leap to imagine a S-A box talking to a Linksys router and beaming content all over the house as well as receiving downloads of music, movies, and photos.  It beats adding a MSFT media PC to my home theater rig.

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