Belkin Agrees To Buy Linksys From Cisco

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News Posted: Thu, Jan 24 2013 10:00 PM
It's strange how things kind of come full circle in the technology realm, even amongst rivals. Though one could argue that Linksys, which was purchased by Cisco, has a pretty good tussle going with Belkin, it's Belkin who is handing over cash to Cisco in order to get something it's been longing for. Belkin this week announced that it has entered into an agreement to acquire Cisco's Home Networking Business Unit, and yes, that includes Linksys. Another year, another changing of hands of one of the world's most noted networking and accessory brands.

Belkin intends to maintain the Linksys brand and will offer support for Linksys products as part of this transaction, and all valid warranties will be honored by Belkin for current and future Linksys products. After the transaction closes, Belkin will account for approximately 30 percent of the U.S. retail home and small business networking market. Per Belkin's own release on the matter: "Belkin and Cisco intend to develop a strategic relationship on a variety of initiatives including retail distribution, strategic marketing and products for the service provider market. Having access to Cisco's specialized software solutions across all of Belkin's product lines will bring a more seamless user experience for customers. Merging the innovation capabilities of Linksys and Belkin provides a powerful platform from which to develop the next generation of home networking technology."

Neither company intends to talk price, but it's certainly an interesting transaction. Suddenly, Belkin and Linksys will be working as one -- which definitely makes us curious as to how that'll impact the competitive landscape.
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I never quite understood what Cisco saw in the consumer space. They're a big iron technology company and the there's synergy on the client side in the enterprise but the profit margins, business model and channels are very different.

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sevags replied on Fri, Jan 25 2013 8:02 AM

Wow.... I never thought one of the best companies would be sold to one of the worst companies especially hen it comes to routers and wifi. Well I guess I'm glad I finally stopped buying linksys, have an asus ac66u and happy. Bye bye Linksys we have good memories.

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