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Linksys expected to fetch less than the $500 million Cisco paid in 2003

Cisco Systems is one the largest makers computer network hardware in the world. While the majority of the products that Cisco sells directly are enterprise grade products sold to businesses, Cisco does have the Linksys consumer brand for wireless routers, hubs, and IP cameras.

However, a report suggests Cisco is looking to sell Linksys and has hired Barclays PLC to help it find a buyer. Bloomberg indicates that Linksys could be interesting to TV makers seeking a recognized brand name and technology.

Cisco purchased Linksys in 2003 to give itself a consumer networking arm for $500 million. At the time, Linksys was a mature company in the consumer business segment with low margins.  Linksys is now expected to fetch significantly less than the $500 million Cisco paid.

Like many other companies in the technology segment, Cisco has been downsizing in order to streamline its operations. The company eliminated 7,800 employees over the last year and closed its Flip video camera unit that made small, handheld digital camcorders.

Source: Bloomberg



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RE: disappearing market.
By Tiborticus on 12/18/2012 6:33:35 AM , Rating: 2
Wrong! The routers included with broadband service is poorer than the service you get from providers. That's why I and many other people I talk to,who are knowledgable, still purchase routers these days and that's also why companies like Asus produce bleeding edge routers. You have apparently chosen to blind yourself to reality or you're just not too bright.


RE: disappearing market.
By Gunbuster on 12/18/2012 9:17:26 AM , Rating: 2
Blind myself to reality? Oh maybe I'm not very bright duuuurrrr

Take your monocle out for a minute. I stated that the market is disappearing. Ten years ago EVERYONE who wanted wifi had to buy their own. Now you only need to go searching for a router if you want upgraded capabilities. What percent do you think that is? The market segment went from 99% of people who needed wifi buying a linksys/netgear/etc... to maybe 10% tops.


"We don't know how to make a $500 computer that's not a piece of junk." -- Apple CEO Steve Jobs

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