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Cisco (CSCO) is selling its Linksys home networking unit to rival Belkin for an undisclosed sum....

  • Thursday, January 24, 5:43 PM ET
    Cisco (CSCO) is selling its Linksys home networking unit to rival Belkin for an undisclosed sum. The price tag is likely well below the $500M Cisco paid for Linksys in '03. Belkin says it will maintain the Linksys brand - both brands compete with NetGear (NTGR). The deal is another step in Cisco's efforts to cut its dependence on low-margin hardware, and increase its reliance on software and services. (previous) Update: PrivCo thinks the price may be around $275M, given Linksys' revenue and multiples for comparable deals.
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This news story has 3 comments:

  •  
    By all means give the nitwit that came up with the original deal a bonus!
    24 Jan, 07:05 PM Reply Like
  •  
    So now, does linksys morf into Belkin technology?
    24 Jan, 09:41 PM Reply Like
  •  
    Cisco fails consistently at retail. LinkSys should have home networking products on lockdown by rights. Any other company would have cornered the market. LinkSys provided some of the first and best networking products to the market when broadband was in its infancy and had a big first mover headstart.

    Cisco can't even sell it's own brand products to retail because their marketing is terrible, even though the quality of their products is great. I remember looking for Cisco products to install in my office and if you didn't meet with a Cisco specialist you really couldn't.

    Belkin on the other hand is retail king, selling crappy products to retail and making money doing it.

    This is a good fit, combining quality LinkSys product with Belkin retail marketing savvy.
    25 Jan, 07:32 AM Reply Like
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