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December 17, 2012

Cisco News - Will Cisco Sell Linksys?

By Joe Rizzo, TMCnet Contributing Writer

Cisco (News - Alert) Systems Inc. (CSCO), a name that can be found in most major corporations around the world, serves as the largest maker of computer networking software and hardware. If you didn’t know it, you can even find them sitting on top of your TV, as Cisco owns Scientific Atlanta. Take a look at the name on your cable box – I’ve had one for over 10 years.

Another of Cisco’s acquisitions was Linksys, who is best known for making routers, repeaters and hubs. Linksys’ (News - Alert) market place is the consumer, or people like you and me. In 2003, Cisco paid about $500 million for Linksys, which has now hired Barclays Plc, a British bank, to find a buyer. Most likely it will be sold for a lot less than Cisco paid for it back in 2003. The marketplace that Linksys occupies is pretty saturated right now.

It appears that Cisco wants to continue to expand its corporate software and technology side while eliminating a good portion of its consumer side. While Scientific Atlanta makes cable boxes, it also used to make the Flip video camera, but this unit was closed down by Cisco due to slow sales. Additionally, Cisco’s CEO John Chambers (News - Alert) eliminated 7,800 jobs during the past year.

There is a related link in here; a group of people who wanted to remain anonymous commented that the Linksys unit may attract the interest of TV set makers seeking to add a recognized brand and technology to their name. It makes me think that if a TV maker can include Linksys as part of its hardware, how easy would it make to connect to something like NetFlix?

There were rumors at the beginning of the year that Cisco was considering selling off the Scientific Atlanta division; however, they recently purchased NDS (News - Alert) Group Ltd. The Israeli video software company, which is based in London, was acquired this year at the end of July.

Combining its TV service provider business (Scientific Atlanta) with NDS, the Cisco Videoscape platform is moving ahead. It is aimed at delivering a “better than being there entertainment experience.”

In conclusion, Cisco appears to be eliminating a lot of strictly consumer based units, such as Linksys, in favor of expanding its already impressive corporate endeavors. 

Want to learn more about the latest in communications and technology? Then be sure to attend ITEXPO Miami 2013, Jan 29- Feb. 1 in Miami, Florida.  Stay in touch with everything happening at ITEXPO (News - Alert). Follow us on Twitter.

Edited by Allison Boccamazzo

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