Comments on: Cisco buys Flip Video maker for $590 million

The networking giant takes its biggest plunge yet into the consumer electronics market with the purchase of Flip camcorder parent Pure Digital.

[websterphreaky]

Oh that's nice, now the Flip Camera will go from $149 to $300 in typical "Cisco Premium" pricing (just like the Apple Premium price gouging and retail Price Fixing)

[technewsjunkie]

Grow up.

[bob1xxxx]

Well thanks the end of flip and new innovative products. Blech!

[ducttape36]

i prefer sanyo's xacti series anyways. better quality, albiet higher price.

[tgrenier]

why would this mean the end of flip. Cisco has not ruined Scientific Atlanta of Linksys have they? SA had nowhere but up to go anyway.

[skillingssucks]

Oh, they ruined Linksys alright.

[sciontcya]

560M wasted.
I'm glad I don't own Cisco stocks...

I think Cisco are after the settop boxes the pure makes and sells to the like if Sky. I think that Flip Video is just a side show.

[kgsbca]

Wow, as a Cisco shareholder, I'm hoping Pure Digital has some unannounced technology under wraps, for that camera's IP is not worth $590M (their current and future potential earnings also can't justify that valuation). They have done a good job executing on a good idea, but that doesn't justify the price Cisco is paying. PDT is not a giant brand name, so future products aren't going to be automatic hits. Cisco doesn't need their distribution channel, they obviously have one of their own. They say they are looking forward to a new line of cameras with embedded 3G or 4G connectivity, but to develop it from scratch wouldn't cost even a tenth of what they are paying, .

I also do not believe the flip camera has 20% of the video cam market. They may have been a first mover with their direct-to-PC design, but there is no significant barrier to entry for a company the size of Cisco.

I find this acquisition shocking, especially in light of the current economy. Maybe they could have justified the price nine+ years ago, but they're paying at least 5x too much today. I guess they feel with a market cap of $95B, paying for this in stock isn't going to matter much.

[the_iceman]

"and will also provide about $15 million in retention-based equity as incentives to PureDigital employees, the company said in a statement." .....following AIG's model I wonder?

[Cindiano]

I guess I look at this news a little differently than the other posters. I use Flip Videos for my course on Marketing Technologies. Working with marketing professionals who want to upgrade their technology skills includes providing easy access ? one of our classes simply places a Flip Video with each ?student? and off they go to shoot relevant video for their business. They learn quickly how to sort through the videos, quickly edit, post to a sharing site like YouTube (all of this built into the software resident on the camera for both PC and Mac) and then use the subsequent embed code to link the video back to their website ? a win, win, win with an inexpensive tool. Basic video capture and edit, social media exposure and SEO from one little camera. By the time they walk out of class, several have already purchased a camera online. Too cool. I?m happy Cisco saw the value in such a great, user-friendly and accessible technology! And I hope the partnership leads to more innovation.

[megdoot500]

remote sensing in mono looks good .....

accuracy thats another question......

the optic answer to the origins of the solar system

salil.

[megdoot500]

the comming of the virtual platform requires the volume of downloads to increase from ONE billion to around 4 billion downloads for the downstream rate to exceed 3.3 pence rate or an upstream rate of
3.5 cents rate of traffic to even see an improvement in data structure usage........

virtual or AI could increase our perspective deeper into the ALU........

salil

[technewsjunkie]

Glad to see Cisco make another shrewd move in the internet-video area.
I see they also licensed a new codec and will integrate it into WebEx.
I am interested in how this all works in their Unified Communications/Collaboration interface so my organization can use it.