Cisco plans to sell router division: report

Cisco plans to sell router division: report

Summary: According to reports, Cisco is seeking out a buyer for its router division, Linksys.

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TOPICS: Cisco, Networking, Wi-Fi
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cisco sell linksys router firm

Cisco is planning to sell home router company Linksys, a company it purchased for $500 million in 2003.

The computer network equipment maker has hired Barclays to find a buyer for the division, according to Bloomberg. Citing sources close to the situation, the publication says that a potential sale is likely to secure far less than what Cisco originally paid, as Linksys is a "mature business" with low profit margins. 

Linksys manufactures routers that provide access to Wi-Fi services, and which are designed for household use.

In order to try and push ahead with the sale, Cisco is reportedly using the services of Barclays, who is also assisting tech giant Google for its sale of the Motorola Home business, which sells equipment to players within the cable and television industry. 

Cisco, currently the world's largest manufacturer of computer networking equipment, has been shedding parts of its business that relate to consumers steadily over the past few years. In an effort to align the firm towards the enterprise, Cisco announced earlier this year that it would shut the door on its Flip pocket videocamera business, which was purchased for $590 million in 2009. In addition, the company said it planned to integrate its umi consumer videoconferencing product into the company's Business TelePresence product line as part of the realignment process. 

Topics: Cisco, Networking, Wi-Fi

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5 comments
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  • Good news

    Linksys was junk that only served to ruin the reputation of Cisco...
    danbi
    • You've got it backwards.

      Linksys made solid consumer products that only got screwed up when Cisco bought them out and started emphasizing slick appearance over solid construction. In particular the overheating problems only started when Cisco abandoned the boxy but functional blue cases and squeezed everything into slimmer, rounded cases.
      waveparker
      • I agree with you there

        I think the consumer side of Cisco/Linksys ruined perfectly good routers by down sizing them causing over heating issues thus reducing lifespan. But I also have seen this with Netgear, Belkin and many of the rest. The only routers have had taken apart with decent heat control has been the Apple Extreme Airport routers. Many others use very lame if any heat sink control on chipset's.
        jscott418-22447200638980614791982928182376
  • Good news

    Linksys was junk that only served to ruin the reputation of Cisco...
    danbi
  • Finally got tired of negative news I guess

    Having owned a few Linksys routers and my last a E1200 is absolutely a perfect example of how much junk is out there in the router market. Would not surprise me Netgear buys them and controls the market with expensive but junkie routers. I remember not too long ago I could buy a router and figure it would last a couple years or better. Lately I think my last three routers have averaged less then 1 year and one only last 3 months. Is it just the cheap China made quality? Or the lousy engineering?
    jscott418-22447200638980614791982928182376