Update: Google buys Feedburner

Earlier rumours that stated that Google wanted to acquire Feedburner in order to get a grip on the rapidly evolving RSS Ad market turn out to be correct. The deal is in the closing stages of being acquired by Google for around $100 million.

The deal makes a lot of sense for both parties. Blogs gain popularity and RSS readers enable users to read multiple blogs effectively without having to visit the original blog source and/or see the sites supporting adverts. So RSS has lowered the value of AdSense and DoubleClick because the majority of the people never see the adds. By acquiring Feedburner Google could start to serve their own ads (Adsense or DoubleClick) into the RSS stream.