Cisco To Buy Flip Video Maker Pure Digital

Mar 19th, 2009 | By | Category: Computer Hardware, General, Video

Router and networking behemoth Cisco today announced its plans to acquire the privately-held Pure Digital Technologies, the makers of the popular, inexpensive little Flip Video cameras.

Cisco calls the reported $590 million acquisition “key to Cisco’s strategy to expand our momentum in the media-enabled home and to capture the consumer market transition to visual networking.” Ned Hooper, senior vice president of Cisco’s Corporate Development and Consumer Groups continued, “This acquisition will take Cisco’s consumer business to the next level as the company develops new video capabilities and drives the next generation of entertainment and communication experiences.”

Flip Video cameras sell for around $100 – $200, and over 2 million units have been sold since their introduction in May 2007. [The newish Flip Mino cameras pictured at right.] The devices record up to 60 minutes of video, and even without bells or whistles, have built in software and USB connectors to sync and upload videos, by way of your computer, directly to video sharing websites.

In addition to the $590 million purchase price, Cisco will provide up to another $15 million in what it terms “retention-based equity incentives” for continuing employees.

Cisco has long been regarded a giant in business networking solutions. This planned acquisition of Pure Digital, however, is the latest in a series of moves away from business computing and into the more lucrative and growing home and consumer electronics market. The Flip deal follows acquisitions of set-top-box maker Scientific Atlanta, and of Linksys, who make networking devices for the home market. At CES this year, Cisco also announced the upcoming release of a “Wireless Home Audio System.”

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No Responses to “Cisco To Buy Flip Video Maker Pure Digital”

  1. Gregg says:

    This deals reminds me of Skype/Ebay deal. Chambers likely does not understand the thin margins and lack of loyalty in the consumer space. I cannot imagine that the software used by Pure is too complicated to be replicated by a 16 year old Bangalore resident is 3 days.

    Does Chambers not anticipate that most phones will have this feature? Perhaps he is thinking of a Pure phone. But, he would be better off buying PALM.

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