Cisco buys Pure Digital

Last Thursday, Cisco announced the acquisition of Pure Digital Technologies, which has been successfully producing Flip portable HD camcorders for several months. The network giant will pay about $ 590 million in its own shares, and in return will receive a whole package of shares of Pure Digital and a “healthy” company for the production of gadgets that have just begun to gain popularity in the market. The end of the transaction is planned for the fourth quarter of the current year.

The actual question is just why a company specializing in the sale and support of corporate network solutions, to climb into the retail market, today is also quite narrow profile? Neither bloggers nor analysts can come up with the answer yet, but many people realize that this acquisition has the same background, according to which Cisco bought Linksys in 2003. If today the word “ipod” means a lot for anyone who is not indifferent to music, then Cisco is quite capable of making the word “flip” a synonym for portable HD video.

In this light, the acquisition of Linksys looks quite reasonable, if we accept the fact that the Eye-Fi flash cards have already somewhat changed the situation with the exchange and distribution of photos in the air, then the Cisco-Linksys-PureDigital tandem can set up a production line of pocket HD video cameras. with the ability to synchronize / share video via Wi-Fi.
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via ArsTechnica