Monday, December 17, 2012

Cisco planning to sell Linksys router division



Bloomberg reports that that Cisco is preparing to sell Linksys, the router company it bought for $500 million in 2003. Cisco is the world's largest manufacturer of computer network equipment, but has been steadily attempting to divest itself of its consumer businesses; it killed Flip just two years after acquiring the pocket camcorder maker in 2009. The company is said to be soliciting TV manufacturers who may be interested in Linksys' established brand and technology.
Bloomberg's sources say that Cisco has hired Barclays to help find a buyer for Linksys — reportedly the same financial firm helping Google sell Motorola's set-top box business — but the company expects to receive much less than it paid nearly a decade ago. While Flip never really made sense for such an enterprise-focused corporation, it's striking that Cisco was seemingly unable to find enough synergy with a company that operated in a similar space.

Source  The Verge

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