Cisco wants to sell Linksys wireless router business

According to foreign media reports,Cisco has hired Barclays to find a buyer for the Linksys wireless router business.

 

According to sources, some TV makers may be interested in Linksys as it will help them strengthen their brands and technologies. Cisco bought Linksys in 2003 for $500 million, and the sale may be much lower because home routers are already a low-margin, mature consumer business.

 

Cisco and Barclays spokespeople declined to comment.

 

Cisco is currently executing a strategy to exit multiple consumer businesses while strengthening enterprise software and technology services. The sale of Linksys is part of that strategy. Because of Cisco's poor performance in the consumer market, Cisco CEO John Chambers laid off 7,800 jobs in the past year and shut down businesses such as Flip's video camera.

 

In addition to Linksys, Cisco also owns the Scientific Atlanta set-top box business in the United States, as well as paid electricityNDS Group, a developer of video channel software. The latter's software is used by Sky Broadcasting Group, Canal Plus and DirecTV. Cisco acquired NDS in July for $5 billion.

 

Barclays is also currently helping Google, selling Motorola Mobility's home business. The main products of this business include set-top boxes and equipment used by cable operators.