Thursday, March 19, 2009

Cisco acquires the flip video camera company?

http://newsroom.cisco.com/dlls/2009/corp_031909.html
Cisco today announced its intent to acquire privately held Pure Digital Technologies Inc. San Francisco-based Pure Digital, creator of the best-selling Flip VideoTM brand,

WTF? $590 million dollars?

These guys only sold 2 million cameras and they are worth $590m? That valuation is higher than the entire revenue (average rrp $149 per camera) that the company has made in it's entire lifetime?

I dont get it what am i missing here?


Cheers,
Dean


P.S. http://gigaom.com/2009/03/19/cisco-to-buy-pure-digital-for-590m/

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