& cplSiteName &

Cisco Unloads Linksys Unit

Jeff Baumgartner
News Analysis
Jeff Baumgartner
1/24/2013
50%
50%

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

(2)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
Jeff Baumgartner
50%
50%
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
50%
50%
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]
Featured Video
From The Founder
Light Reading founder Steve Saunders talks with VMware's Shekar Ayyar, who explains why cloud architectures are becoming more distributed, what that means for workloads, and why telcos can still be significant cloud services players.
Flash Poll
Upcoming Live Events
May 14-16, 2018, Austin Convention Center
May 14, 2018, Brazos Hall, Austin, Texas
September 24-26, 2018, Westin Westminster, Denver
October 9, 2018, The Westin Times Square, New York
October 23, 2018, Georgia World Congress Centre, Atlanta, GA
November 7-8, 2018, London, United Kingdom
November 8, 2018, The Montcalm by Marble Arch, London
November 15, 2018, The Westin Times Square, New York
December 4-6, 2018, Lisbon, Portugal
All Upcoming Live Events
Hot Topics
I'm Back for the Future of Communications
Phil Harvey, US News Editor, 4/20/2018
BDAC Blowback – Ex-Chair Arrested
Mari Silbey, Senior Editor, Cable/Video, 4/17/2018
Verizon: Lack of Interoperability, Consistency Slows Automation
Carol Wilson, Editor-at-large, 4/18/2018
AT&T Exec Dishes That He's Not So Hot on Rival-Partner Comcast
Mari Silbey, Senior Editor, Cable/Video, 4/19/2018
US Govt. Bans Domestic Component Sales to ZTE
Dan Jones, Mobile Editor, 4/16/2018
Animals with Phones
I Heard There Was a Dresscode... Click Here
Live Digital Audio

A CSP's digital transformation involves so much more than technology. Crucial – and often most challenging – is the cultural transformation that goes along with it. As Sigma's Chief Technology Officer, Catherine Michel has extensive experience with technology as she leads the company's entire product portfolio and strategy. But she's also no stranger to merging technology and culture, having taken a company — Tribold — from inception to acquisition (by Sigma in 2013), and she continues to advise service providers on how to drive their own transformations. This impressive female leader and vocal advocate for other women in the industry will join Women in Comms for a live radio show to discuss all things digital transformation, including the cultural transformation that goes along with it.

Like Us on Facebook
Twitter Feed