Cisco Kills Flip

Ryan Kim at GigaOM:

Cisco is giving up on its barely two-year-old $590 million purchase of Pure Digital Technologies, announcing today that it is closing its Flip business unit and cutting 550 employees as part of a larger restructuring. The move comes after clear signs that the outsized deal was not paying off for the technology giant, which is in the midst of refocusing its business on its core networking business.

The Flip is like the Kindle: it does one thing well and simply. And those qualities captivated the average consumer and catapulted Pure Digital into a US$590 deal with Cisco. I think it would be great if Cisco were to spinout its Flip business unit.