Cisco sells home networking business to Belkin
Reuters: San Francisco, Jan 26 2013, 02:32 IST
Cisco Systems Inc is selling its home networking business to Belkin, the networking giant’s latest move to exit the consumer business. The companies did not disclose the financial terms of the deal, which Belkin said on Thursday is expected to close in March.
With the sale, Cisco sheds one of the last remaining pieces of its consumer business, following the shutdown of the Flip video camera business in 2011. Earlier this month, Cisco said it would shutter its Umi online video-conferencing service.
“Their direct consumer business had all but gone away. This was the next shoe to fall,” said ZK Research analyst Zeus Kerravala. “They made a commitment to investors that they were going to focus on their core areas,” said Kerravala, who noted that the profit margins for the home networking business were lower than those for Cisco’s other businesses.
The deal comes 10 years after Cisco entered the home networking business with its $500 million stock acquisition of the Linksys Group in March 2003.
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