I know someone who was involved in that deal, and I remember hearing that the Flip folks were very happy to sell because they knew iPhone was about to add video support.
Did that acquisition EVER make any sense?
well the logic was the following (I'm assuming): video requires tons of bandwidth, more video out there means more bandwidth requirements. Where are cisco's cash cows? in routers/exchange devices.
Arguably all that video would have been created anyway.
well maybe, maybe not. the idea was to be at every point in the bandwidth creation/consumption stream.
Never. I wonder why these mega-corps make these acquisitions if they always kill the product after some time.
The acquisition made sense if they wanted to diversify into the consumer space. What did NOT make sense was the astronomical pricetag of $590 million. How many flips + services would need to be sold to generate $590 mil in revenue?
So they acquire talent + brand for a large part of $590 million ? seems pretty expensive.
Pure Digital CEO Jonathan Kaplan left cisco over two months ago.
I meant the people from Cisco responsible for the deal.
knowing the old cisco that's very doubtful, but maybe this new "we have to do a whole lot very fast or we're screwed" cisco will handle it as one would expect.