Net2Phone plans unit spinoff; Cisco to invest
The Internet-based voice company Monday will announce plans to spin off a portion of its business, which will include a minority investment from Cisco Systems.
The spinoff, which will focus on licensing Net2Phone's Internet voice software to companies, will include a minority investment from networking giant Cisco Systems, according to sources.
News of the new company will quell an active rumor mill in recent weeks that hypothesized that Net2Phone and Cisco would embark on a joint venture. Net2Phone's stock was up more than 6 percent today on rumors of the venture.
A Net2Phone representative could not immediately be reached for comment. A Cisco spokesman declined to comment.
AT&T was among several firms that invested $1.4 billion in Net2Phone this past March.
Net2Phone is a combination of a software company and Internet-based long-distance voice provider. All or at least part of the company's software business will be part of Adir Technologies, sources said.