Quote:
Originally posted by FlyingIguana
just because cisco invested in it doesn't mean they will continue to pump money into it. they may eventually cut their losses and move on.
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All depends on what sort of timeframe Cisco went into the Cogent venture with.
Cisco was created in 1999. They didn't invoice their first customer for revenue until April, 2001. 6 months later, Cisco upped their credit arrangement with Cogent from $310M to $409M, an increase of $99 million.
Doesn't sound to me like Cisco had any short term plans for Cogent.
Obviously, if 10 years from now, Cogent is still doing shitty, it will be a failure, but no one here knows what sort of timeline Cogent is operating on. But I can guarantee you, they are not being judged by their creditors on their sales for this year or last year. For all anyone here knows, Cogent could be ahead of schedule as far as it's investors are concerned.
No one who invested in Cogent was looking for a return less than a year after Cogent was able to start invoicing customers.