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Cisco to sell off Linksys division

BusinessNews
by Oluseun Alufa
, 17 Dec 2012News
Cisco to sell off Linksys division

Cisco may be preparing to dump its Linksys wireless router division, according to Bloomberg.

The tech giant has reportedly contracted Barclays to aid in the sale of Linksys, which it acquired in 2003 for $500 million (£309 million).

Crediting the news to sources with "knowledge of the situation", the report claims that Cisco’s home wireless router subsidiary will be sold at a marked down price point due to its “low margins”.

Linksys may prove to be an attractive proposition to TV set manufacturers looking to tap into its brand cache and in-house technologies.

The sale is part of the Cicsco's ongoing strategy to shift from the consumer market and focus on its corporate and enterprise service units.

This strategy was demonstrated by the 2011 termination of its Flip camera business and a mass layoff of 14 per cent of its global workforce, which has claimed 11,500 jobs to date

Neither Cisco nor Barclays has commented on the rumours thus far.

Image Credit: Flickr (camknows)

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