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telcodad

join:2011-09-16
Lincroft, NJ
kudos:5
reply to telcodad

Re: [STB] Cisco thinking of getting out of the set-top box busin

Well, this could be a first step in Cisco selling off its set-top unit:

Cisco Said to Hire Barclays to Sell Linksys Division
By Serena Saitto & Jordan Robertson, Bloomberg - December 16, 2012
»www.bloomberg.com/news/2012-12-1···ion.html

From the article:

Cisco wants to sell Linksys as part of its strategy to exit consumer businesses while expanding in corporate software and technology services. Chief Executive Officer John Chambers eliminated 7,800 jobs over the past year and closed businesses such as the Flip video-camera unit amid a slowdown in sales growth after a foray into consumer technologies backfired.

In addition to Linksys, Cisco also operates in the home market with its Scientific Atlanta set-top-box unit and with NDS Group Ltd., a software maker for paid-television channels used by British Sky Broadcasting Group, Canal Plus and DirecTV. Cisco bought NDS in July for $5 billion.


mikedz4

join:2003-04-14
Weirton, WV

why would they sell the highly successful cisco router business?



telcodad

join:2011-09-16
Lincroft, NJ
kudos:5

said by mikedz4:

why would they sell the highly successful cisco router business?

They are only looking to sell the consumer router part (i.e., Linksys), not their corporate/enterprise router one. As the article says: "Cisco wants to sell Linksys as part of its strategy to exit consumer businesses while expanding in corporate software and technology services."

SpHeRe31459

join:2002-10-09
Sacramento, CA
kudos:1
reply to mikedz4

said by mikedz4:

why would they sell the highly successful cisco router business?

Easy, to Cisco, Linksys is just a piddly little product line that is sold for cheap (since it's a home user product line that competes in the highly competitive, and discounted, SOHO market). Cisco has a highly successful AND profitable product line already, they did before they acquired Linksys... it's their enterprise class network equipment, it's a defacto standard for enterprise networks. Hell Cisco equipment pretty much runs the Internet as we know it....


telcodad

join:2011-09-16
Lincroft, NJ
kudos:5
reply to telcodad

Looks like Cisco is still staying in the set-top box business, just being more selective about which deals they bid on now:

Cisco Is 'Walking Away' From Low-Margin Set-Top Deals: Chambers
Service Provider Video Revenue Up 20% Due to NDS Acquisition

By Todd Spangler, Multichannel News - February 13, 2013
»www.multichannel.com/cable-opera···s/141719