03.10.2009 01:50 PM
Cisco Said Poised to Take HD Video Camera Maker
SAN JOSE: CALIF: Reports persist that Cisco Systems is buying Pure Digital for around $500 million. The San Francisco company makes Flip Video cameras, which include an HD line running $130 to $230. The cameras are designed to easily upload video to the Internet. iStockAnalyst reports that Pure Digital had sold 1.5 million Flips since the company launched introduced them in May 2007.
Pure Digital has been VC-funded to the tune of $68 million by players such as Sequoia Capital, Benchmark Capital, Morgan Stanley, Crescendo Ventures, Disney’s VC arm Steamboat Ventures and others.
Cisco (NASDAQ: CSCO)is said to be sitting on around $4 billion earmarked for small acquisitions, but the network gear giant has yet to confirm the Flip play. The acquisition would represent a completely new direction for Cisco, up to now a strictly enterprise-level services provider. And while Flips generally are not considered for broadcast-quality video, networks and stations are increasingly seeking the cheapest ways to populate multiple platforms and move content. – Deborah D. McAdams