Reuters: Technology News: Cisco sells home networking business to Belkin

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Cisco sells home networking business to Belkin Jan 24th 2013, 23:51 Tweet Share this Email Print Related News Google's fourth-quarter results shine after ad rate decline slows Tue, Jan 22 2013 Facebook shares rise in buildup to mystery event, earnings Mon, Jan 14 2013 Related Topics Tech » Deals » Global Deals Review: 2011 Q3 » Global Deals Review: 2011 Q2 » Global Deals Review » Inflows Outflows » A sign marking a Cisco office is pictured in San Diego, California November 12, 2012. Credit: Reuters/Mike Blake By Alexei Oreskovic SAN FRANCISCO | Thu Jan 24, 2013 6:51pm EST SAN FRANCISCO (Reuters) - 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. Belkin, a privately held company that makes smartphone accessories and home networking products, said it would continue to maintain the Linksys brand, and that it would have a roughly 30 percent share of the U.S. home and small business networking market after the deal. Cisco does not break out financial results for the home networking business. The Cisco business unit that includes the home networking business, as well as other networking and "emerging" technology products, had revenue of $220 million in the most recent quarter, down roughly 12 percent year on year. Shares of Cisco slipped 3 cents to $20.99 in after-hours trading on Thursday. (Reporting by Alexei Oreskovic; Editing by Jan Paschal) Global Deals Review: 2011 Q3 Global Deals Review: 2011 Q2 Related Quotes and News Company Price Related News Tweet this Link this Share this Digg this Email Reprints We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/ Comments (0) Be the first to comment on reuters.com. Add yours using the box above.

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