Cisco reportedly shopping Linksys division

Media report has Cisco hiring Barclays to seek buyer

Cisco is reportedly looking to unload Linsys, the maker of wireless routers for consumers that the company acquired almost a decade ago. This isn't the first time such reports have surfaced.

From a Bloomberg story:


Cisco Systems Inc. (CSCO), the largest maker of equipment for computer networks, has hired Barclays Plc (BARC) to find a buyer for Linksys, which makes routers for home wireless access, said people with knowledge of the situation.

The unit may attract the interest of TV set makers seeking a recognized brand and technology, said the people, who asked not to be identified because the process isn't public. Linksys is likely to fetch much less than the $500 million Cisco paid for it in 2003 because it is a mature consumer business with low margins, the people said.

Cisco CEO John Chambers recently told Wall Street that the company intends to place additional focus on selling software and services.

If the sale occurs, Cisco would remain a player in the home router market, notes this story in The Register.

This time the rumour at least seems well-timed given that Cisco has just acquired Meraki, a company whose WiFi assets are rather more modern and therefore more likely to be attractive to businesses of all sizes.

Ditching Linksys before Meraki comes aboard makes sense as it will help Cisco to present a less-confusing portfolio of WiFi brands.

Router vendor Belken International may be one  potential Linksys buyer, according to blogger Brad Reese.

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