Cisco makes sense to offload Linksys

By David Richards | Tuesday | 18/12/2012

Global networking Company Cisco is looking to offload the Linksys brand of consumer electronics gear after struggling to make headway in the consumer electronics market.

Back in 2003 Cisco paid $500M for Linksys. Analysts now claim that the networking Company will struggle to get that investment back in the current market.

According to industry sources, Cisco has hired Barclays to find a buyer for the struggling Linksys brand.

Last year Cisco was forced to shutdown their Flip Camera division after forking out $590 million to purchase the Flip camera maker Pure Digital Technologies. Executives from Pure Digital were given responsibility for the Linksys brand.

Former chief executive, Jonathan Kaplan, help set Cisco’s strategy as senior vice president and general manager in charge of consumer products.

In the past Cisco spent heavily on consumer branding, hiring celebrities such as Ellen Page to star in its television commercials and paying for product placement in high-profile TV shows.

Analysts claim that Linksys may be a good purchase for companies looking for an established brand and technology. Spokespeople for both Barclays and CIsco declined to comment on the report.

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But the present technologies of patents may not be relevant to the new buyers, unless there is a possibility to take over fibre optics technology, or powerline technology to integrate with the Grid, otherwise Cisco may not recover it’s original purchase price on outdated technologies.

– Contributed by Oogle.

Author: Gilbert Tan TS

IT expert with more than 20 years experience in Apple, Andriod and Windows PC. Interests include hardware and software, Internet and multimedia. An experienced Real Estate agent, Insurance agent, and a Futures trader.

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