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Cisco Unloads Linksys Unit

Jeff Baumgartner
News Analysis
Jeff Baumgartner
1/24/2013
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Belkin Corp. has struck a deal to acquire Cisco Systems Inc.'s Linksys home networking business unit for an undisclosed sum, marking Cisco's latest exit from a consumer-facing business. The deal comes about a month after rumors surfaced that Cisco was shopping the unit, and had hired Barclays Capital to find a buyer. (See Rumor: Cisco Looking to Sell Linksys Unit.) Cisco and privately held Belkin didn't say how much money would be changing hands or how many employees would be joining Belkin when the deal is closed in March. Cisco acquired Linksys for $500 million in March 2003. But Cisco will still keep Linksys and its technology within arm's reach. "Belkin and Cisco intend to pursue a strategic relationship focused on a variety of initiatives including retail distribution, strategic marketing and products for the service provider market," Hilton Romanski, the head of corporate business development at Cisco, said in this blog post about the deal. Why this matters
For Cisco, the deal will move another consumer-oriented business off its plate, and continue a process that started last year as the company sought to simplify itself and deepen its focus on service provider customers. It also marks a rare divestiture for Cisco. The deal should expands Belkin's already sizable retail presence. It estimates that it will account for roughly 30 percent of the U.S. retail home and small business networking market once Linksys is added to the fold. For more



— Jeff Baumgartner, Site Editor, Light Reading Cable

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Jeff Baumgartner
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Jeff Baumgartner,
User Rank: Light Beer
1/25/2013 | 1:32:25 AM
re: Cisco Unloads Linksys Unit
Might be a good time for Cisco to bail, but still have some access to the Linksys technology.-áAs Jeff Heynen noted on the Twitters (https://twitter.com/jeffheynen... , the market for stand-alone home networking gear will be declining as-áservice providers continue to bake all that stuff into a-á new class of-áall-singing, all-dancing gateways, which is where the future of the old set-top is heading. JB
Craig Matsumoto
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Craig Matsumoto,
User Rank: Light Sabre
1/25/2013 | 12:11:02 AM
re: Cisco Unloads Linksys Unit
What's left of "consumer" is the set-top unit, right?-á Cisco has always always always insisted set-tops are important, and they're not giving up on that unit, and they have to have the set-top because it's important to their cable customers, and .... we'll see.

[Edited for spelling, because clearly it's coffee time]
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