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News > Technology
Cisco calls on Net2Phone
September 18, 2000: 8:55 a.m. ET

Networker takes stake in newly formed voice-over-Net company
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NEW YORK (CNNfn) - Net2Phone Inc. said Monday it is forming a new firm to further its Internet telephone services and Cisco Systems, the networking equipment maker, will take a minority stake.

Financial details were not disclosed.

The new venture, Adir Technologies Inc., will focus on expanding Net2Phone's (NTOP: Research, Estimates) voice-over Internet protocol (VoIP) software to businesses and broadband, Internet, wireless and next generation service providers.

Cisco (CSCO: Research, Estimates) will co-market Adir's network management platform to its VoIP customers, with Net2Phone receiving a new stream of revenue from software licensing fees.

graphicIn March, AT&T (T: Research, Estimates) took a 32 percent stake in Hackensack, N.J.-based Net2Phone for $1.4 billion and Internet portal Yahoo! (YHOO: Research, Estimates) gained a 5 percent interest in Net2Phone for $150 million.

Internet analysts said Monday's announcement by Net2Phone represents a strategic shift to move further into the online telephone software business and away from providing actual Web telephony services.

In Friday trade, shares of Net2Phone closed up $1.94 to $33.81 while Cisco finished up $1.50 at $62.75. Back to top

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