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No_Strings
Premium,MVM,Ex-Mod 2008-13
join:2001-11-22
The OC
kudos:6

Cisco to shed Linksys

Not a complete surprise. It was never quite a fit.

»www.reuters.com/article/2012/12/···20121216

Networking equipment company Cisco Systems Inc has hired Barclays to sell its Linksys home router unit, a report said on Sunday.

The business, which Cisco acquired for $500 million in 2003, will likely be valued for less because it has low margins, according to Bloomberg.

The sale is part of Cisco's strategy to shed its consumer unit and focus on its software and technology services businesses.

Last year, Cisco axed its Flip camera business as part of this strategy.

davidhoffman
Premium
join:2009-11-19
Warner Robins, GA
kudos:2

Maybe when they are free from Cisco, the Linksys people can come up with products and services that offer better value, and are tested more extensively before release to the public. Oh wait, some venture capitalist firm, borrowing 99% of the purchase price, will probably be the buyer, and they "must" have an immediate ROI of 2000% to pay back the loan within 1 year. Look for a gutted company to be the result of this sale.



mb

join:2000-07-23
Washington, NJ
Reviews:
·Comcast
·Verizon Online DSL

said by davidhoffman:

...some venture capitalist firm, borrowing 99% of the purchase price, will probably be the buyer, and they "must" have an immediate ROI of 2000% to pay back the loan within 1 year. Look for a gutted company to be the result of this sale.

And so it goes... Capitalism has run amok!


No_Strings
Premium,MVM,Ex-Mod 2008-13
join:2001-11-22
The OC
kudos:6

Alternative scenarios are possible.

»www.ocbj.com/news/2012/dec/17/ci···linksys/

The rumors are swirling once again in technology circles with a host of potential suitors in the mix, including giants Dell Inc., Microsoft Corp and Netgear Inc. to local players such as Fountain Valley-based networking equipment maker D-Link Systems Inc.
The story that is playing out - one where a (usually large) company buys another as an avenue to a market it sees as lucrative but doesn't understand, mismanages the effort by losing key talent, diluting the brand or under investing and finally jettisons the purchase to cut its losses - is probably more common than a badly executed LBO.


Kyawa
Premium
join:2006-01-26
Middletown, MD

They must not have paid attention when giant Cicso bought them and their value plummeted. At least the founders, who built a great product, made good $$.



Bill_MI
Bill In Michigan
Premium,MVM
join:2001-01-03
Royal Oak, MI
kudos:2
Reviews:
·WOW Internet and..

The Linksys legacy lasted to at least 2008. I'll never forget my first exposure to South Park when someone at work mentioned it: »www.engadget.com/2008/04/17/scre···nternet/

That's not a Netgear...