It was one of the great tech start-up success stories of the last decade.
The Flip video camera, conceived by a few entrepreneurs in an office above Gump’s department store in San Francisco, went on sale in 2007, and quickly dominated the camcorder market.
The start-up sold two million of the pocket-size, easy-to-use cameras in the first two years. Then, in 2009, the founders cashed out and sold to Cisco Systems, the computer networking giant, for $590 million.
Last Tuesday, Cisco announced it was shutting down its Flip video camera division.
From the outset, the acquisition was an odd fit for Cisco, which is known for its enterprise networking services. To some analysts, the decision to shutter Flip was an admission by Cisco that it made a mistake.
Cisco said its decision to shut down the Flip division was part of an overall restructuring plan of its consumer business. “We are making key, targeted moves as we align operations in support of our network-centric platform strategy,” said John T. Chambers, Cisco’s chief executive, in a statement.