Thursday, March 20, 2003

Cisco buys Linksys

Cisco Buys Linksys – Moves Into The Home. In a bit of a surprise, Cisco today announced that they’re buying Linksys for $500 million. Linksys is the leader in wireless routers for homes by a long shot, so this lets Cisco move down the chain to a more consumer level offering. Cisco has recently been trying to make their product configurations more “user friendly” and Linksys has the reputation for having one of the more user friendly configuration systems around, so that makes sense. Cisco has also decided that they’re going to keep the Linksys brand name – which makes sense since it’s so strong in the retail market right now. It seems that the old gameplan for any networking company remains in place: grow big enough and get enough attention until Cisco wants to buy you. [Techdirt]

Linksys was closing in on $400m in revenue in 2002. Cisco got a bargain.

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