Rumor: Cisco looking to sell WebEx, Linksys businesses

Cisco (NASDAQ:CSCO) is rumored to be looking for a buyer of its WebEx collaboration platform, as well as its Linksys home networking product line, and reports say the divestitures coud come as early as next week.

Citing "people familiar with the situation," the Register said it had spoken with Cisco, which declined comment.

Both products came from acquisitions Cisco made as it attempted to broaden its portfolio; Linksys set it back $500 million in 2003 and WebEx a whopping $2.9 billion in 2007.

But Cisco CEO John Chambers has been under the gun to revitalize the company, which has struggled in recent quarters. Critics say it's simply become too diverse and has lost its edge in its core competency, switches and routers.

Chambers earlier this month told investors that he would cut $1 billion from the company's expenses in the next 12 months to bring them more in line with revenues. Chambers said he would cut the workforce and under performing products and divisions to meet the bottom line. Some analysts say the jobs cuts could reach 5,000.

Previous to Cambers announcing the $1 billion cost cuts, the company already had begun to whittle down its consumer portfolio, shuttering its hit Flip video camera business and cutting 550 jobs in the process.

For more:
- see this Register article

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