Belkin to Buy Linksys from Cisco
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Belkin Announces Acquisition Of Linksys
Belkin to Buy Linksys
TheVerge.Com Has Reported That Cisco Is Indeed Selling Linksys.
The rumors have been circling almost since Cisco, the self-described worldwide leader in networking, purchased Linksys back in 2003. There was almost instant buzz that Cicso was looking to unload their acquisition. Cisco's desire to enter into the consumer networking market has proven to be more of a challenge than they anticipated. Cisco will continue to be a leader in Wired and Wireless networking products, but will do so back in their position of strength - the Enterprise Market space.
The Linksys purchase is a positive for Belking for many different reasons. First off, they will now possess roughly 30% of the consumer maket. They also will have the benefit of incorporating Cisco technology acquired in the deal across their existing platform. The competition - Netgear, D-Link, Apple, etc. - will now have to deal with an even stronger Belkin product line.
Belkin CEO Chet Pipkn said in statement, "Belkin's ultimate goal is to be the global leader in connected home and wirless networking space and this acquisition is an important tet to realizing that vision."
The question now, is how Belking will handle the dicey task of merging its existing buisiness with the Linksys lines. Many companies have gone down this path. Some have found the Promised Land, while many have ended up on the street corner wondering how the can't miss proposition back fired!!
I hold out hope that Belkin can in fact incorportate the existing Linksys products, and technology, with their current Belkin brand offerings. They do have one advantage, they are not trying to enter a new arena. If they are able to pull this off, they will continue to be an innovator and introduce products that bring enterprise level technology to the small office/home users.
Only time will tell of course, but we are eager to see what comes from the proposed merger, and hope for the best. We have recommented both Linksys & Belkin brands in the past, and look forward to testing new releases. Keep an eye on the Almeida & Associates web site for further information and recommendations.