Nortel Networks Goes Titsup….The Fall From Grace Is Complete

(BTW, titsup is not what you think it is. Here is the defitinion of the word.)

Once the darling of the Canadian technology industry, Nortel Networks has filed for creditor protection in both Canada and the United States. Creditor protection would give the company more opportunities to explore restructuring options or sell off some of its assets, but it could also leave the company open to being bought for pennies on the dollar. Nortel was once the most valuable company in Canada with a $366-billion (Canadian) market cap and 95,000 employees. Of course that was before the dot come bubble burst eight years ago. It has never recovered and has a market cap of $192-million as of yesterday with 26,000 employees. Today the shares are likely worthless and what employees are left are mass e-mailing their resumes (assuming they weren’t already doing that). However, it is still the biggest telecom manufacturer on the planet, which makes their assets worth buying by companies like Cisco and Nokia to name a couple.

By the way, Nortel can expect to lose significantly more business because of this filing, which will likely send the company into a death spiral. So you can expect this company to die shortly.

For Canadians, this is a sad moment.

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