updated 05:50 pm EST, Mon December 17, 2012
Cisco expected to fetch far less than $500 million on the sale
According to industry sources, Cisco Systems has hired Barclays to find a buyer for its home networking division Linksys. Reportedly, Cisco is planning on divesting itself of the home router manufacturer as part of its strategy to exit consumer-level businesses while expanding in technology services, and other corporate solutions.
Linksys may be a good purchase for companies looking for an established brand and technology. The company is expected to fetch significantly less than the $500 million Cisco paid for it in 2003 because of market forces, and the evolution of the industry in the last decade. Spokespeople for both Barclays and Cisco declined comment on the report.
The company had denied reports it planned to sell off Linksys last year, when it announced that it would end the Flip camera line. While Linksys is a major brand name among consumer routers, the company has failed to grow significantly since being purchased.