Extreme Networks Stuck with Its Headquarters

In an indication that neither enterprise networking nor residential real estate in Silicon Valley is hitting on all cylinders, Extreme Networks has disclosed that Pulte Homes Inc. has withdrawn from a $70-million deal to buy the networking firm’s Santa Clara, Calif.-based headquarters.

During the company’s latest conference call, Extreme’s executives informed market analysts and investors that a contract to sell its 16-acre site to the homebuilder expired "under its own terms without the buyer proceeding forward."

Explained Mike Palu, Extreme’s acting chief financial officer:

We are in discussions regarding the possibility of entering into a new agreement, but will also explore other alternatives.

Well, good luck, Mike! Market readings indicate that a slowdown in national and regional home sales could have severe impact in Silicon Valley.


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