Cisco is seeking buyers for Linksys
In 2003, Cisco paid about $ 500 million to take over Linksys, the company that develops routers for home use. Today, nine years later, the same Cisco seeks to tell the end of the story and is looking for someone who wants to be Linksys.
According to the Bloomberg report, Cisco would have retained the services of Barclays to explore these markets and find someone who is willing to put a lot on the table and stay with Linksys. Yes, this time the amounts would be something different: Linksys is a mature company that has little room for growth, so surely no one will want to pay those Cisco 500 million disbursed in time.
Of course, none of the parties involved wanted to refer the issue, mainly because the move was not done openly. Reports also indicate that this Sale would not be precisely Cisco’s financial problems (though you never know), but because the latter would definitely leave the consumer segment of a more domesticated, and expand into the enterprise market.
Regardless of who makes the final purchase, probably the change of ownership will not affect much the future of Linksys.
Link: Cisco Said to Hire Barclays to Sell Linksys Division (Bloomberg)Tags: Barclays, buyer, Cisco, Linksys, Routers, Sale