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There are rumours that Cisco is selling its STB wings, software, hardware or both. 

Software might refer to the recently acquired NDS conditional access company and hardware should refer to the division resulted by the acquisition of Scientific Atlanta acquisition. 

I also heard of Cisco approaching companies like, TCS, Arris etc..

Also, due to various reasons, the top guys, Martin De Beer, Jesper Anderson and Yorai Feldman are not on board. Are these various reasons just a coincedence? 

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I think, Cisco was not able to use NDS to its best and the returns out of this USD 5 billion is little.
Cisco could have continued to with NDS sales model for a couple of years till NDS products are fully integrated to Cisco eco-system.

I don't Cisco had made money with Scientific Atlanta acquisition either.

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Look at this link where John Chambers clarifies that they are keeping Set Top Box division and also this. I don't think that they will sell this division off, but keep it for some time, deliver already committed products and then close it down. De Beer, Video and Collaboration head is on a very long leave (1 year). Jesper Anderson (was head of Service Provider Video Group) moved on to a different role and Yorai Feldman, APAC head of earlier NDS was allegedly fired from Cisco. I also heard that Abe is moving on - yet to be announced though. This indicates that there are no high-level business & technology decisions to be taken (top guys vanish). Run the show for sometime to deliver the stuff and close down. 

All these symptoms makes it easy for one to a conclusion that there is something seriously wrong and there is no need to continue the business. Cutting the heads will also save some bucks.

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