Cisco rumored to sell failed Linksys unit2012-12-17 09:30 by DanielaTags: Cisco, Linksys
Cisco Systems Inc. has engaged banking group Barclays PLC to find a buyer for its Linksys home network router business, Bloomberg reported Monday. According to the report, which cited people with knowledge of the situation, the unit is likely to fetch less than the $500 million Cisco paid for it in 2003. Cisco wants to sell Linksys as part of its strategy to exit consumer businesses while expanding in corporate software and technology services. Chief Executive Officer John Chambers eliminated 7,800 jobs over the past year and closed businesses such as the Flip video-camera unit amid a slowdown in sales growth after a foray into consumer technologies backfired. Losing Linksys almost certainly won't hurt the networking giant. Absent imminent updates to the 802.11 standard, consumers and small businesses alike have little reason to contemplate new WiFi router purchases. The devices also run for years, while many punters probably have no idea maintenance like firmware updates are even possible, never mind necessary. Read more -here-
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