Could Flip Have Survived On Its Own? (TCTV)
April 12, 2011 at 20:32 PM EDT
When people build startups, we measure their measure success not only by how big is their exit, but also by how many lives their products touch and how long their brands lasts in the minds of consumers. Cisco's decision today to shutter its Flip Video business two years after paying $590 million for it raises a series of questions which startup founder/investor Chris Dixon and I address in the video above. Why didn't Cisco sell the business? Was the tax write-off bigger than anything Flip could have fetched? But namely, was it inevitable that Flip would have failed on its own because it got in the way of the iPhone , or could it have adapted if it stayed independent? There is no right answer here. Imagine if Netflix had been acquired early on by Blockbuster or some other lumbering giant—it would never be where it is today. On the other hand, Android is great example of a company that flourished because it was acquired by Google and given the resources to become the powerhouse that it is today.