This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Cisco Adds Flip Camera to Video Plan

Updated from 9:18 a.m. EDT

Cisco (CSCO - Get Report) took another leap into the consumer market with a $590 million all-stock deal to buy Flip video camera maker Pure Digital.

The Flip cameras are designed to capture point-and-shoot videos for quick edits and immediate uploads to Web sites like Google's (GOOG) YouTube. The move fits Cisco's strategy to boost video traffic and ultimately cause network owners to buy more of its infrastructure.

Cisco says 2 million Flip cameras have been sold.

The fact that Cisco risked none of its $29 billion cash pile on the deal is somewhat reassuring to investors who feared the tech titan would start down the dilutive merger and acquisition path.

Cisco has been in cash conservation mode. Pure Digital is just the second acquisition this year, compared with five last year and 11 in 2007. Cisco's biggest plunge into consumer electronics have been the set-top box maker Scientific-Atlanta and home WiFi gearmaker Linksys.

The move comes a week after rumors of Cisco's interest in the San Francisco camera shop were first reported.

Earlier this week, Cisco vowed to charge into Hewlett-Packard (HPQ - Get Report) and IBM's (IBM) turf with a data server product plan. But instead of acquiring a big name in the field like data storage firm EMC (EMC - Get Report), Cisco has opted to partner with the likes of Intel (INTC - Get Report), Microsoft (MSFT - Get Report) and virtualization shop VMware (VMW - Get Report) in the effort.

Cisco shares were down 2.1% to $16.16 in recent trading.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
CSCO $28.89 0.24%
EMC $26.59 0.34%
GOOG $555.37 -1.71%
INTC $32.50 1.31%
HPQ $33.07 -0.57%


DOW 18,037.97 -42.17 -0.23%
S&P 500 2,108.92 -8.77 -0.41%
NASDAQ 5,060.2460 -31.8390 -0.63%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs