If Microsoft is serious about creating its own hardware ecosystem, I think this would be a potentially interesting investment. If I am reading the right numbers online, the price is not very much for a Microsoft size company (in the hundreds of millions).
well the first question is this:
what IP rights, patents or other assets would MS get in such a deal that they need to buy them?
if they do not have something special in that area then it's not a good move.
MS can do a wireless router any time they want with out having to buy Linksys.
so what are the items they have that should make MS want to buy them ?