Redback Networks Inc / Siara Systems
Redback Networks Inc / Siara Systems is a company.
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Leadership Team
Key people at Redback Networks Inc / Siara Systems.
Redback Networks Inc / Siara Systems is a company.
Key people at Redback Networks Inc / Siara Systems.
Key people at Redback Networks Inc / Siara Systems.
Redback Networks Inc. was a telecommunications networking equipment provider founded in 1996, specializing in hardware and software like the SMS (Subscriber Management System), SmartEdge, and SmartMetro product lines to help Internet service providers manage broadband services.[2] In November 1999, during the dot-com bubble, Redback acquired Siara Systems Inc.—a startup launched in June 1998 developing prototype systems for more manageable and secure Internet traffic—for $4.3–$4.7 billion in stock, issuing 31.3 million shares that gave Siara investors a 38% stake in the combined company.[1][2][5] Redback served high-speed Internet access providers via cable TV and DSL, addressing Web traffic congestion amid exponential online growth expectations; Siara extended this to carrier-grade edge routing needs, but as a development-stage firm with no revenues and prototype products only, it fueled Redback's expansion before the bubble burst, leading to Redback's eventual $1.9 billion acquisition by Ericsson in 2007.[1][2][6]
Redback Networks was founded in August 1996 in Sunnyvale, California, by Gaurav Garg, Asher Waldfogel, and William M. Salkewicz, with seed funding from Sequoia Capital.[2] The company went public in May 1999 at $23 per share (adjusted), seeing shares surge 266% on day one amid dot-com hype, reaching a peak of $198 in 2000 before crashing to $0.27 by October 2002.[2] Siara Systems emerged in June 1998 in Mountain View, California, as a privately held developer of Internet traffic management and security systems, backed by investors and employing nearly 170 engineers plus a software facility in Vancouver, B.C.[1][4] The pivotal merger closed in March 2000, retaining Siara's team and structure under Redback's name to broaden its service provider offerings.[2][4][6]
Redback and Siara rode the late-1990s dot-com wave, capitalizing on forecasts of explosive Internet traffic growth that demanded faster, more secure broadband infrastructure for ISPs and carriers.[1][2] Their 1999 merger exemplified bubble-era M&A frenzy—valuing prototype tech at billions via skyrocketing stocks (Redback at $150/share)—which accelerated edge routing innovations but exposed risks when demand didn't match hype post-2000 crash.[1][2][5] This influenced the telecom sector by consolidating talent and IP into survivors like Redback (later Ericsson-acquired), shaping carrier-grade networking standards amid fiber overbuilds and DSL/cable booms, though it highlighted unsustainable valuations in nascent high-speed Web ecosystems.[2][3]
Redback/Siara's story peaked with Ericsson's 2007 buyout at $1.9B ($25/share), integrating their tech into enduring telecom portfolios, but as defunct entities, their legacy endures in modern broadband management.[2] No active operations remain, yet trends like 5G/edge computing echo their traffic-handling innovations, potentially revived via Ericsson's ongoing use of SmartEdge lineage. Their influence evolved from bubble pioneers to foundational IP in global networking, underscoring how timely acquisitions amid hype can yield long-term ecosystem value despite short-term volatility.[2]
