Cisco to sell off underperforming Linksys: insiders

Sluggish consumer networking arm expected to sell at considerable loss

Tags: Cisco Systems IncorporatedCisco-LinksysUSA
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Cisco to sell off underperforming Linksys: insiders Cisco is ditching consumer units in favour of enterprise business.
By  Stephen McBride Published  December 18, 2012

Cisco Systems Inc has secured the services of Barclays Plc to act as facilitator in the sale of loss-making router manufacturer Linksys, Bloomberg reported.

Given its maturity and low margins, people familiar with the process thought it likely that the sale would be for a considerably more modest figure than the $500m Cisco paid for Linksys in 2003.

Interested parties may include makers of smart TVs or other network products manufacturers such as Western Digital Corp (WDC) or Belkin International Inc.

While Cisco does not itemise Linksys sales figures the business unit is a major part of a division that has seen a 35% decline in sales over the past two years, losing ground to Netgear Inc in an industry with falling prices.

Cisco declined to comment on the sale, but is thought to favour the shedding of consumer businesses as part of its strategy to enter the enterprise software and services arena. CEO John Chambers axed 7,800 jobs in the past 18 months and got rid of ventures such as the Flip video-camera unit because of a slowdown in sales.

1794 days ago
Vinod Mehra

Consumer market is the growing market but it is a wise decision on Cisco to cut of losses and dispose of Linksys to bring focus on its core srength.

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