Cisco Reportedly Selling Linksys

December 19th, 2012 at 2:04 am
 


Cisco has been known as one of the primary leaders in the manufacture of computer network equipment. One of its more popular products belongs to its Linksys division which makes routers for wireless networks in homes. But sources indicate that it might not be long before Cisco might be parting ways with one of its popular brands.

According to Bloomberg, Cisco has hired Barclays Plc. to help the company find a buyer for Linksys. It may be a move by Cisco to slowly move away its focus from its consumer business to concentrate more on corporate software and technology services, just as it has been doing as a strategy lately. But according to reports, Cisco might be expecting to continue on with the sale of Linksys even at a loss.

Cisco acquired Linksys in 2003 to the tune of $500 million. But it plans to sell the division may for less than the amount the company paid to acquire Linksys. One reason for this is that Linksys is seen as a mature business with low margins, resulting in a limited number of interested buyers. Barclays and Cisco may be concentrating in marketing Linksys to interested TV set makers who might want to make use of the established Linksys brand as well as the technology it has amassed through the years.

Source: Bloomberg

 

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