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Pure Digital, maker of the popular Flip Video camera, is reportedly nearing a deal to be acquired by Cisco, according to a report in TechCrunch.

The original Flip Video camera from Pure Digital.

(Credit: Pure Digital)

TechCrunch cites several anonymous sources saying that San Francisco-based Pure Digital is considering a sale. Another source says the Cisco sale "is a done deal," and puts the price tag at "north of $500 million."

Pure Digital CEO Jonathan Kaplan wasn't available for comment.

Pure Digital had been in the business of making one-time-use cameras for about five years before it hit the jackpot with its Flip Video, a small, flash-based video camera that allows easy uploads of videos directly to YouTube and other online video sites.

The Flip Video went from basically nothing to grabbing an outsize chunk of the video camera market in two years, inspiring more established electronics brands like Kodak and Sony to follow suit with their own small video cameras.

Pure Digital has discussed possible sale at least once before. CNET News reported in January that Sony tried to buy Pure Digital--but balked at the price--before developing its own Webbie HD camera.

Fabrik's (re)drive, the first external drive made partially of bamboo.

(Credit: Fabrik)

When I reviewed Fabrik's SimpleTech Signature Mini and SimpleTech (re)drive external hard drives a while ago, I liked its tasteful designs. As it turns out, my taste wasn't so peculiar.

Hitachi on Monday announced its decision to acquire Fabrik, a privately held supplier of personal and professional storage solutions.

If you haven't heard of Fabrik, this is because it has been selling external storage under two better-known brands: G-Technology and SimpleTech. CNET has reviewed several products launched under each brand.

Although the financial details of the transaction were not disclosed, Hitachi made it clear that Fabrik's business will remain intact and form the core of Hitachi Global Storage Technologies' new external-storage business.

Going forward, you will still find Fabrik external storage in both G-Technology and SimpleTech brands. The combined company plans to offer external-storage solutions based on both regular hard drives and solid-state drives.

The acquisition seems a natural move for Hitachi. For the Japanese company, it means an expansion into a market for external-storage hardware currently dominated by Seagate and Western Digital. For California-based Fabrik, it means broadening its market horizons, though it probably also means limiting the internal hard drives for its external storage solution to those of Hitachi.

(Credit: ADD)

Things may be getting a little more stylish up on the DMZ (the Korean Demilitarized Zone) when Republic of Korea troops don their new high-tech battle uniforms. Accessories could include bulletproof helmets and a new assault rifle.

The Agency for Defense Development will begin the two-phase development on a new combat uniform beginning next year, according to The Korea Times.

"The agency has completed studies on the concept of the future combatant uniform and equipment,'" an unnamed official told the newspaper. "From next year, we plan to begin developing related technology and equipment after getting approval from the Defense Acquisition Program Administration."

The new new battle uniforms would provide protection against nuclear, biological, and chemical attacks, and would feature automatic temperature control. A new protective vest is also planned. In addition to keeping the lead out, the helmet will be prewired for minicam video transmission, GPS navigation, and assorted networking gear, the official said.

The rifle has already been tested and could come online sooner than the rest of the outfit. The double-barreled K-11 assault rifle lets the shooter fire either NATO 5.56- or 20-millimeter grenades, all off the same trigger. Day and night aiming is accomplished with a thermal target seeker and laser that calculates distance automatically--a true point-and-shoot.

Virgin Mobile now owns Helio.

(Credit: Virgin Mobile)

Well, it finally happened. Less than two months after Virgin Mobile USA made its move to purchase Helio, the acquisition is now official. Virgin Mobile USA paid $39 million in stock for the nascent MVNO, and as part of the purchase, Virgin Group and SK Telecom will each invest $25 million in the combined company, as we reported back then. It'll be interesting to see how the two companies mesh their brands--Virgin Mobile is known for its cheap prepaid phones, while Helio is almost the exact opposite, known mostly for its high-end monthly subscription devices.

Certainly, there's a big chance that the two will complement each other. Both are youth-oriented, but for different segments of the market, and it makes sense to bring both under the same umbrella. That said, I wonder if the Helio side of things will continue to offer innovative and full-feature handsets like the popular Helio Ocean, or if the combined company will end up with a midtier compromise. Whatever happens, it'll be interesting to see what the future holds for both Virgin and Helio.

Ultimate Ears' Web site is already trumpeting the acquisition.

(Credit: Ultimate Ears)

Logitech on Thursday announced that it will be acquiring headphone-manufacturer Ultimate Ears for $34 million. The all-cash deal is expected to close later this month, but signs of the impending integration are already apparent on the Web sites of both companies (Logitech.com and Ultimateears.com).

Ultimate Ears specializes in in-ear "canal phones" for portable audio devices such as the iPod. While the company's flagship UE-10 Pro model--a set of headphones that are custom-molded to the listener's ears--cost upwards of $900, the product line includes plenty of other headphone products in the more mainstream $40-$250 range.

Prior to the Ultimate Ears acquisition, Logitech's only headphone products were PC and Bluetooth headsets. Going forward, the Ultimate Ears products--which have generally scored high marks from professional reviewers, CNET included--will gain access to Logitech's massive marketing and retail distribution resources. It's a formula that's worked for Logitech in the past: through acquisitions such as Intrigue Technologies and Slim Devices, Logitech has supersized products such as the once-obscure Harmony universal remotes and Squeezebox network audio streamers into mainstream consumer electronics success stories.

Victor and Kenwood said Monday that they plan to become one company by October 1 this year.

The two Japanese audio equipment makers will combine to form JVC Kenwood Holdings, which will be based in Yokohama, near Tokyo. Victor, a subsidiary of electronics giant Matsushita, is best known for its JVC brand. Under the agreement, Kenwood Chairman Haruho Kawahara will become the holding company's chairman, while Victor President Kunihiko Sato will become the new company's president.

It came in fits and starts, but the two have finally settled on a merger agreement. It was first discussed last year, and since then the two have agreed to develop future car and home audio systems together.

The new business will focus on car electronics, home electronics, and professional wireless systems, and will also explore new product segments. The two companies are combining in hopes of reducing costs and scaling their distribution in the already-crowded Japanese consumer electronics market. For the same reason, Victor said last month it would no longer make flat-panel TVs for the Japanese market.

Blockbuster sure sounds like it wants to buy Circuit City, but is it able to?

The financial advisers to Circuit City told company officials Wednesday that they think Blockbuster, which has offered $1 billion for the consumer electronics retailer, doesn't have the proper financing to make good on its bid, according to a Reuters report.

In a statement, the company said, "Circuit City awaits a viable financing structure that is predictably executable by Blockbuster given its current constraints of size and capital structure before it would be appropriate to allow further due diligence."

Blockbuster's CEO said earlier this week that his company would proceed with its takeover effort only if conditions are right and that it is loath to go through with a hostile bid. Circuit City has essentially stonewalled Blockbuster since the initial bid was made in February, not allowing easy access to its books.

Also Wednesday, a Circuit City investor who owns 6.5 percent of the company's stock sent a letter to Circuit City urging the company to open its books to its suitor and begin negotiations. The retailer responded quickly to Wattles Capital Management, issuing a statement reiterating its position that Blockbuster hasn't answered its questions regarding how it plans to finance a deal.

Video rental giant Blockbuster on Monday announced it has offered to purchase Circuit City Stores for $6 to $8 per share, or about $1 billion to $1.3 billion.

Blockbuster initially made the proposal on February 17, but says Circuit City has not provided the due diligence it needs to make a more definitive offer. On Monday, Blockbuster decided to go public. In a letter to Circuit City CEO Philip Schoonover, Blockbuster CEO Jim Keyes notes that the two companies have been discussing proposed tie-ups since December.

(Credit: Blockbuster)

Blockbuster says the offer is intended to "capitalize on the growing convergence of media content and electronic devices."

"Our proposal offers Circuit City a significant premium to its existing stock price and creates a game-changing retail concept with a sustainable competitive advantage. We believe the combination will result in a compelling consumer proposition that will drive significant revenue and margin enhancements as well as cost synergies," Keyes said in a statement.

Circuit City issued its own statement saying it had received the offer, and was still evaluating its options.

A combination of the two companies would add up to an $18 billion business, according to Blockbuster's calculations. Both companies have struggled in the past year--Circuit City posted a $200 million loss near the end of 2008, and Blockbuster has been fending off Netflix's success in online video rentals, as well as the growing threat of digital movie downloads.

Last week news leaked out that Blockbuster had a set-top box under development that would stream video content directly into homes, which was seen by many as a last-ditch effort to adapt its business.

Continuing its spending spree, Acer announced Monday it plans to acquire E-Ten for $290 million.

Based in Taiwan, E-Ten has been around for more than two decades, and part of its business includes manufacturing Pocket PC phones and PDAs for other companies. But it's probably known best to consumers by its Glofiish consumer brand name, established less than two years ago.

Acer buys Glofiish maker E-Ten

(Credit: Glofiish)

With this purchase, Acer, also based in Taiwan, appears laser-focused on becoming a major mobile player. Thanks to its acquisitions of both Gateway and Packard Bell, it's already taken out Dell as the second-largest manufacturer of notebooks. Now it appears ready to jump into the handheld computing fray.

"The acquisition of E-Ten increases Acer's global footprint by giving us a strong and highly credible presence in the mobility segment," J.T. Wang, CEO of Acer, said in a statement.

It's interesting that Acer has apparently been in the market for a mobile phone company and bypassed Motorola, which was, even if only temporarily, up for grabs. Instead, it went for a relative unknown (outside of China), that is likely far cheaper but, more importantly, one that specifically makes smartphones, rather than flip phones and their ilk.

Acer apparently sees value in the smartphone trend. Regarding the announcement, Acer President Gianfranco Lanci added, "The worldwide smartphone market is estimated to grow by more than 30 percent by 2011. Acer will enhance the competitiveness in the ultramobile segment, by combining PC and communication technologies."

Smartphones are increasingly becoming tinier versions of laptops. And they're only going to keep getting smarter, more connected, and more powerful. So for a company that is doing well shipping a lot of notebooks, finding a way to sell even smaller versions of those computers makes a lot of sense.