Cisco To Exit STB Business?

Cisco could be switching off their Scientific-Atlanta cable set-top box business after six years. According to an unidentified sources quoted by the New York Post, the networking hardware maker has already decided to sell the unit following decreasing margins for the business.

A company spokeswoman has denied all such reports but, the source claimed "I know Cisco is out looking to sell Scientific-Atlanta". Another source also claimed that private equity firms are likely to be interested because of the potential low purchase price.

Back in 2006, Microsoft had shown some interest in buying the business this is unlikely to be the case given that the software giant is betting heavily on the Xbox 360 gaming console to supplant the traditional Set Top Box in the lounge.

Cisco has also gradually shifted its focus to Videoscape; it is a solution that allows various media companies to provide content via cloud services to tablet computers as well as smartphones.

Cisco revealed last year that it had agreed to sell off the manufacturing facilities of Scientific Atlantic situated at Maxico to one of the company's contract manufacturers.