Cisco, computer equipment manufacturing giant has reportedly hired Barclays to find a purchaser for its Linksys Division. Linksys, the division making routers for wireless access in homes, was acquired by Cisco in 2003 for $500 million, reported Forbes.
However, Linksys is bringing in lesser money from what Cisco had earlier paid, as the margins of profit are low in this period, reported Bloomberg.
Linksys may attract TV manufactures that are looking for branded technology, people familiar with the process told Bloomberg.
The drastic step of Cisco is attributed to its attempt of exiting consumer markets and expanding in the technological and software services industry. In the previous year, John Chambers, CEO of Cisco had red taped 7800 employees and closed down the Flip Video-camera unit which did not do well in the market, reported Bloomberg.
Cisco has been under continuous stress about the rising costs that could stunt its growth and has driven the company to slash thousands of employees, reported RTT News.
Cisco also carries out operations with Scientific Atlanta's set-top-box unit and NDS Group that makes software for paid TV channels that are used by Canal Plus, DirecTV and British Sky Broadcasting Group. Cisco purchased NDS in July 2012 for $5 billion.
Cisco has declared an agreement to trade away its set-top-box manufacturing unit in Mexico to Foxconn Technology Group, reported RTT News.
Barclays spokespersons however, declined to comment, reported Bloomberg.
Barclays has been advising Google on its sale of the Motorola Home Business.
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