Cisco Acquires Pure Digital and Its Flip Camcorders

I've written about Pure Digital's Flip line of camcorders several times now, and I have to tell you, though I know their initial products prior to to Flip were real misses, I love this line of camcorders, and so does the public: Flip currently says it has around 20% of the camcorder market. Thus, is was with trepidation that I saw the announcement Thursday that Cisco was buying the company, for $590 million.

While it obviously means that Flip has an infusion of cash, and that employees and VCs get a big payday, it's hard to see how this consumer business fits into Cisco's plans.

Going consumer has been done by Cisco before, such as when they bought Linksys in 2003, but that made more sense, as Linksys sells home and small business networking products. In 2003 it bought Linksys and its extensive line of home and small business networking gear.

In 2005, Cisco acquired Scientific Atlanta, a leading maker of cable TV set-top boxes, which once again really didn't make all that much sense.

Or perhaps it does: the WSJ notes that Cisco seems to be aiming for a presence in your living room. If you think about some of Linksys' products, like their Media Hub, combine that with set-top boxes and the Flip, there is a connection.

Still, how many times has some giant corporation taken over some great, innovative little company, and either done little or nothing with it or totally screwed it up? I'm hoping Cisco won't do that, and that Pure Digital's Flips continue to roll, but I'm still wary (I say as I turn on my Flip Mino to record my baby daughter).