Cisco (CSCO) May Sell Linksys Unit, Taps Barclays to Advise
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Cisco Systems (Nasdaq: CSCO) could move higher on the session Monday amid chatter that the network equipment giant might be looking to unload its Linksys division.
Bloomberg says Cisco hired Barclays (NYSE: BCS) to oversee the transaction. Overall, Cisco might take a loss on the sale as Linksys is expected to draw less than the $500 million Cisco paid for it in 2003 because it is a mature company with tight margins.
The move comes as Cisco plans to refocus on corporate software and technology businesses, while exiting the consumer segment. Cisco also has another set-to-box offering in Scientific Atlanta.
Shares of Cisco are flat Monday.
Bloomberg says Cisco hired Barclays (NYSE: BCS) to oversee the transaction. Overall, Cisco might take a loss on the sale as Linksys is expected to draw less than the $500 million Cisco paid for it in 2003 because it is a mature company with tight margins.
The move comes as Cisco plans to refocus on corporate software and technology businesses, while exiting the consumer segment. Cisco also has another set-to-box offering in Scientific Atlanta.
Shares of Cisco are flat Monday.
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