Cisco could sell set-top division

Cisco is considering a sale of the set-top box division it purchased from Scientific-Atlanta five years ago.

According to the New York Post, Cisco has become disenchanted with the market which has changed dramatically since the $7 billion purchase. In that time the old-fashioned set-top has become increasingly sophisticated, though at the same time margins have come under pressure.

Motorola Solutions, Cisco’s long-time competitor in the domestic market is in the process of a sale to Google, while the old duopoly is itself in danger from the likes of Pace that has made significant strides into the United States.

Cisco is one of the suppliers of the Virgin Media TiVo box and has an exclusive arrangement with Spain’s ONO. It recently entered an agreement to sell one of its key manufacturing facilities located in Juarez, Mexico to one of its contract manufacturers.

The most likely buyer would be a private equity firm.

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