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Virtualization: Article

Cisco Sells Linksys

Terms were not disclosed

Cisco disclosed late Thursday that it has agreed to sell its Home Networking Business Unit, which includes its Linksys routers, to privately owned Belkin International.

Terms were not disclosed.

Cisco bought Linksys in 2003 for $500 million worth of common stock but has been shedding its consumer interests like the Flip video camera lately to focus on commercial sales and Linksys was reportedly unlikely to fetch anywhere near the price Cisco originally paid for it.

Linksys routers have not maintained their quality under Cisco's administration and sales by the unit where it was housed have fallen 35% over the last two year, Bloomberg recounts.

The deal should close in March.

Belkin said the acquisition will give it 30% of the US retail home and small-business networking market.

The companies mean to develop a strategic relationship on various initiatives including retail distribution, strategic marketing and products for the service provider market.

Bloomberg said back in December that Cisco had Barclays out spotting a potential buyer.

More Stories By Maureen O'Gara

Maureen O'Gara the most read technology reporter for the past 20 years, is the Cloud Computing and Virtualization News Desk editor of SYS-CON Media. She is the publisher of famous "Billygrams" and the editor-in-chief of "Client/Server News" for more than a decade. One of the most respected technology reporters in the business, Maureen can be reached by email at maureen(at)sys-con.com or paperboy(at)g2news.com, and by phone at 516 759-7025. Twitter: @MaureenOGara

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