Belkin completes Linksys deal; looking towards tackling smarter homes

Belkin completes Linksys deal; looking towards tackling smarter homes

Summary: With new Linksys products promised to roll out this spring, Belkin's focus for the unit is going to center around networking solutions for mobile devices and smart homes.

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Right on schedule, Belkin has confirmed that it has completed its acquisition of Linksys from Cisco.

However, not a lot should change -- at least from a customer perspective -- for Linksys. Belkin has promised to offer support for Linksys products, guaranteeing that valid warranties will be honored by Belkin for current and future Linksys products.

With new Linksys products promised to roll out this spring, Belkin's focus for the unit is going to center around networking solutions for mobile devices and smart homes.

But for Belkin, it's another story.

The buyout is expected to grow Belkin's reach considerably as the Los Angeles-based company asserted in the initial acquisition announcement that it will account for approximately 30 percent of the U.S. retail home and small business networking market.

To recall, Belkin revealed its bid for Cisco's home networking business unit, which includes the Linksys brand, back in January.

Reports had already been circulating that Cisco was planning to jettison its router division, which effectively marked the end of the networking giant's consumer business.

Cisco originally purchased the home router company for $500 million in 2003. Financial terms for Belkin's purchase, however, have not been disclosed.

Topics: Networking, Cisco, Hardware, Unified Comms, Tech Industry

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6 comments
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  • One thing will change - brand perception...

    Linksys moving to Belkin from Cisco will change the perception of the brand, if nothing else - and not for the better.

    Under Cisco, they were a subsidiary of a company widely considered "the" premium networking brand in the world.

    Under Belkin, they are now a subsidiary of a company widely considered (especially in the router market) to be incredibly cheap and poorly built. I don't see this being a good move for the Linksys brand itself, unless Belkin can get past their own reputation.
    daftkey
    • Changed Perception?

      From 'boing boing', Jul 3, 2012: "Owners of CISCO/LINKSYS home routers got a NASTY SHOCK this week, when their devices automatically downloaded a new operating system, which LOCKED OUT device owners."

      Is Belkin really worse?
      sk43999
      • Is Belkin really worse?

        Probably. I have certainly learned to equate Belkin with really expensive cheap junk.
        Bill4
  • Never in a million years ...

    ... did I ever think I'd see Linksys end up being bought by Belkin. Linksys used to pretty much own the home WiFi & router market. Wow, how the world turns.
    bitcrazed
  • "Linksys used to pretty much own the home WiFi & router market"

    Where? Seriously?

    I admit to feeling Linksys is a more upmarket brand than others, but to say pretty much "own" is CERTAINLY not true at all.

    We are a small IT company with just over 200 home and business clients only, but I can tell you honestly, that when we do on-site work, none of our technicians have ever seen a linksys ANYTHING on-site.

    If I had to pick a winner, I'd say most people are using Netgear, but even that is not a convincing number. It is extremely diverse.

    Sure, I see a lot of Linksys being advertised, by my real use experience doesn't back up what you're saying, in fact it's almost the opposite.

    Mind you we deal mainly within 60km of Perth CBD, so it may very well be a different story where you are.
    Ramrunner-5dd3e
  • A silver lining for Linksys

    I think good can come out of this for Belkin if Belkin drops its own cheap line for Linksys. I think Cisco as an enterprise network equipment provider not a commodity home retailer. It was not a good fit for them.
    Richardbz