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Cisco: Downplays Rumors It Will Sell Set-Top Box Unit

This article is more than 10 years old.

Cisco Systems yesterday denied any interest in getting rid of its set-top box business.

Following a report from the New York Post which says an unidentified source contends that the company is looking to sell the old Scientific Atlanta business, which Cisco acquired in 2006 for $6.9 billion, Cisco spokesman John Earnhardt refuted the story in a blog post.

"Every few months there seems to be a rumor or speculative comment about our commitment to our set top box business," he wrote. "Let me be as clear as I can: we love set top boxes. But, you don’t have to believe me."

He then pointed to a comment from CEO John Chambers on the company's January quarter earnings call.

“In terms of set top boxes, we are very much committed to this marketplace. Our SP [service provider] customers asked us to partner with them as they move from traditional set top boxes to IP set top boxes to the cloud, our Videoscape solution. Receptivity so far has been very, very good in terms of our strategy.”

Added Earnhardt: "I hope that this clarifies any erroneous, un-sourced comments that might be out there in the marketplace."

The speculation about the Scientific-Atlanta business comes as Google nears completion of  the acquisition of Motorola Mobility, the other major player in cable set-top boxes; there's also speculation that Google could eventually decide to sell that business.

Cisco is up 17 cents, or 0.8%, to $20.46.