Cisco (NASDAQ:CSCO) announced the acquisition of Chinese digital TV box maker DVN Holdings for about $45 million.
Digital TV boxes, also known as set-top boxes, allow cable and satellite providers to deliver interactive TV services like video-on-demand as well as higher picture quality to their subscribers. Although the acquisition of DVN is a small transaction by Cisco's standards, it provides Cisco access to a fast growing market.
1. How much does the digital TV box business matter for Cisco (as a percentage of the stock)?
2. Which major tech stock is most impacted by digital TV boxes?
Answers: About 5%, Motorola
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