Rumor: Cisco Hires Barclays to Sell Linksys Division

Bloomberg reported over the weekend that Cisco Systems has hired Barclays to find a buyer for Linksys, which makes routers for home wireless access. 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. Who might buy up Linksys? Belkin International is a name that industry insiders keep mentioning. I have a feeling it will be sold for much less than the $500 million Cisco paid for it in 2003!