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December 17, 2012

Cisco Systems May be Trying to Sell Off Linksys Division with Help of Barclays

There are numerous rumors surfacing that Cisco Systems (News - Alert) wants to sell off its Linksys division and has hired Barclays to help with the likely sale.

Barclays declined to comment, but it was recently reported that the UK-based company is also helping Google (News - Alert) on the sale of its Motorola Home Business.

Meanwhile, Linksys, which manufactures routers for household wireless access, may be sold for “much less” than the $500 million Cisco paid for it in 2003.

Bloomberg (News - Alert) speculated that television set makers may be interested in acquiring Linksys, given its brand and technology. One other possible purchaser is Belkin International, according to a rumor heard by Brad Reese.

Cisco may want to sell off Linksys (News - Alert) because it’s trying to move completely away from consumer businesses to focus more on corporate software and technology.

Cisco is reorganizing the company, and cut 7,800 jobs over the past year as well as closing the Flip video-camera division and other business units. Instead, Cisco plans to focus on: "core routing; switching and services; collaboration; architectures; and video," according to Arts Technica. Cisco already has a “tremendous presence” in telecom closets and data centers.

“The consumer market has been a mess for the networking titan,” The Register commented in its report about the Linksys rumors.

Linksys is focused on home and small office networking product sectors. For example, several weeks ago it announced the availability of the Linksys Smart Wi-Fi Router with 802.11ac technology. With a Universal Media Connector it wirelessly connects such devices as Smart TVs, Blu-ray players and game consoles. The Linksys Smart Wi-Fi2 platform also lets users control home network and devices through Smart Wi-Fi Tools and Apps.

Want to learn more about the latest in communications and technology? Then be sure to attend ITEXPO Miami 2013, Jan 29- Feb. 1 in Miami, Florida.  Stay in touch with everything happening at ITEXPO (News - Alert). Follow us on Twitter.




Edited by Brooke Neuman
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