Pure Digital (Flip Video) In Acquisition Discussions; Cisco May Be Buying
San Francisco based Pure Digital Technologies, the seven year old company behind the Flip Video line of video cameras, is considering a sale of the company, multiple sources have confirmed. One interested buyer is rumored to be Cisco.
Flip cameras - dead simple and small video devices that are tailored towards users who want to upload video to the Internet - have become massively popular. One source says the company has sold more than $200 million worth of the tiny cameras in the last couple of years. Based on reviews of the recently released Flip Mino HD, we’re not surprised. The devices cost between $130 and $230 and have spawned a large group of copy cat competitors.
One potential buyer, says a source, is Cisco, which has been more active recently in acquisitions. Ned Hooper, Cisco’s chief M&A guy, is said to be actively looking to buy or invest in consumer startups that offer high-bandwith-using services. A hot startup like Flip, which is helping to fuel the explosion in user generated video (much of which makes its way online), fits in perfectly with that strategy.
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