Cisco Acquires Pure Digital, Makers of the Flip Video Cam, For $590 Million

Cisco is surely on to something: an enterprise mobile videophone? $500,000 internet backbone router with cute modular Flip video cam? Or maybe they just want a consumer horse besides Linksys in their stable that clearly has some legs: Flip's video cams have sparked a netbook-like fever, with everyone and their brother getting into the tiny HD camcorder game. The deal is expected to close by Cisco's fourth quarter of 09.