Of course the big news today is Cisco’s abandonment of their $590 million Flip acquisition. Yeah, it’s a disappointment (which we saw coming) and somewhat perplexing that a buyer wasn’t lined up – the brand retains significant value even if the recent and unreleased products don’t.
Over on Twitter, I had an interesting exchange with former Wired reporter Priya Ganapati:
(read from bottom to top)
Priya wonders how Flip’s founders feel, in retrospect, given the situation. I assume they’re wistful… but driving nice cars. I also assume that the decision wasn’t entirely theirs to make. More often than not, the investors are the ones calling the shots. And they successfully nurtured Pure Digital and then liquidated for a handsome profit.
As I said on Twitter, each of my previous employers has been acquired. Some were financial wins, some were financial losses. The various parties usually talk ‘good fit’ and ‘synergy’, but ultimately deals are done based upon who offers the most cash at the right time. Just ask Palm. Er, Elevation Partners.