Blog-related startups are such M&A bait these days. Even more appealing than Technorati (per my previous post), may be Feedburner. TechCrunch is reporting that Google (GOOG) is finalizing a deal to buy Feedburner for $100 million. Treat this as a rumor. But there would be some logic to such a deal. Feedburner manages 721,024 feeds (at last count) that go out to millions of people who read them in feed readers like Bloglines and Google Reader or personlized home pages like My Yahoo, Netvibes, and Pageflakes. (Feedburner manages all the feeds for the B2.0 blogs, for instance).
As more and more people consume blogs and news via feeds instead of going directly to the hosting Websites, the ads in those feeds will become more valuable. Google wants its ads to be everywhere, on the Web and in feeds, so buyng Feedburner could help its quest to expand into all reaches of the universe. But $100 million would be a huge payday for Chicago-based Feedburner and its CEO Dick Costolo, a former comedian (no joke).
Update: Costolo confirms that Google did in fact buy Feedburner