Cisco Systems has reportedly hired financial services company Barclays to help find a buyer for Linksys, a well-known brand with regards to routers, according to unnamed sources as first reported by Bloomberg. Television set makers might make great targets for a purchase due to brand recognition and how their technology could be implemented in future connected sets.
The decision to sell the brand is all part of Cisco’s overall strategy to get out of the consumer business and focus more on corporate software and technology services, according to the publication. In fact, CEO John Chambers has cut nearly 8,000 jobs over the course of the past year, eliminating other brands like the Flip Video camera in the process.
Even still, Cisco still have their hands tied up with a number of other business ventures. The company produces the Scientific Atlanta cable set-top box. In July, they purchased NDS Group for $5 billion and together, they operate British Sky Broadcasting Group, Canal Plus and DirecTV.
It is believed that Linksys would sell for a bit less than the $500 million that Cisco paid in 2003 due to the fact that it is a mature brand with low overall margins. Representatives for Cisco and Barclays both declined to comment on the sale.
In the interest of curiosity, what brand of router do you use for your home network? Linksys and Netgear are probably the two names that I am most familiar with but it’s no secret that brand loyalty plays a huge role in router sales these days.