Cisco has proven to be one of the leading network equipment manufacturer in the world. Ten years ago, along with the Linksys acquisition, the company entered the market of networking for home users and small businesses. Since then, Linksys has become well known for its routers such as the popular WRT54G, and continued to provide equipment for the same market.
In 2008, the economic conditions began to deteriorate, so Cisco decided to leave the household products market, abandoning products like Flip and Umi. Now, it’s time to let Linksys go to Belkin. Belkin is a well-known home networks manufacturer, especially across the Atlantic, and they announced that the transaction will be completed in March this year. By that time, the company will own about 30% of domestic networking equipment market in the United States.
The new owner of Linksys said that they will use the previous established brand, probably in an attempt to keep the traditional clientèle of this company. The “blood line” between Cisco and Linksys will not be completely interrupted, because Belkin will continue to work with them in order to promote their new products.