Rumor: Cisco Looking To Sell Off Linksys Division

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News Posted: Mon, Dec 17 2012 2:23 PM
Linksys routers have become virtually ubiquitous in consumers’ homes over the years, but parent company Cisco (NASDAQ: CSCO) is reportedly looking to sell off the brand. Cisco is looking to get out of the consumer business and focus more on enterprise software and services, and unloading Linksys will be a big step in that direction.

Linksys will most likely be fine; it’s a valuable brand and will bolster some lucky company’s consumer portfolio, despite some cuts and reductions that Cisco enacted since buying the company for half a billion bucks in 2003. Bloomberg’s sources indicate that TV makers could be interested in Linksys.

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According to Bloomberg, Cisco also owns Scientific Atlanta and NDS Group, Ltd., which produce consumer-level set-top boxes and software for pay-TV channels, respectively. The report did not indicate whether or not those other assets would also be on the auction block, but it did say that Barclay’s will be helping Cisco find a buyer for its Linksys division.
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Dorkstar replied on Mon, Dec 17 2012 4:37 PM

I feel like Cisco is cutting off their arm here, in hopes of being able to replace it.  It's always strange when a company sells off a brand as popular as Linksys is.  

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OSunday replied on Mon, Dec 17 2012 7:20 PM

Every router I've used in my home since I was younger has been a linksys... I don't understand why Cisco would want to sell off a successful area of it's own business?

I understand that it has a plan to move in a different direction than consumer products, but I don't understand why one would be willing to turn away from something profitable just for a direction change

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There is some problem perhaps with the quality of Linksys. But I think they are down sizing their business.

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There is also possibility that the focus to wide and down sizing and reduce the weight and size of the organization would stream line the entire operations

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