Flip cameras - dead simple and small video devices that are tailored towards users who want to upload video to the Internet - have become massively popular. One source says the company has sold more than $200 million worth of the tiny cameras in the last couple of years. Based on reviews of the recently released Flip Mino HD, we’re not surprised. The devices cost between $130 and $230 and have spawned a large group of copy cat competitors.

Cisco (CSCO), looking to move deeper into the consumer electronics industry,  at first offered $400M all cash to buy pure digital but we went around and around numerous times and we finally got a number considerably higher than mentioned here and ALL CSCO stock…….

Cisco, which has been more active recently in acquisitions. Ned Hooper, Cisco’s chief M&A guy, is said to be actively looking to buy or invest in consumer startups that offer high-bandwith-using services. A hot startup like Flip, which is helping to fuel the explosion in user generated video (much of which makes its way online), fits in perfectly with that strategy.

The company is backed by Sequoia Capital, Benchmark Capital, Crescendo Ventures, Focus Ventures,(this is us) Morgan Stanley, AllianceBernstein and Steamboat Ventures (the venture capital arm of the Walt Disney Company) and has raised at least $68 million in venture funding.

PS. This deal is done that Cisco is confirmed as the buyer and that the price is “north of $500 million.” I joined the case in this winter and got lots of help from my friends, now we are pretty happy with the outcome especially in these markets. Thanks to all of you helping to make this happen!