Chicago’s Feedburner places ads at the bottom of RSS feeds, the subscription technology that early adopters use to read blogs and other news. It is slowly becoming mainstream, so while advertising on feeds is a mere trickle right now, it will likely soon become substantial.
This would give Google one more way to fill out its offerings. It is tiresome, for us publishers, to have to sell ads separately, once for the web site, and again for our feeds (no big player offers a way to place an ad on both feeds and sites). By buying Feedburner, Google would become a one-stop shop. There are a few other companies that let people advertise in RSS feeds, including Pheedo, but Feedburner is considered the leader.
One rumor puts the deal amount at around $100 million, which wouldn’t be bad, considering Feedburner only raised $10 million from Mobius, Portage, Sutter Hill and Union Square Ventures.
Keep in mind that rumors of a Feedburner sale have come and gone — and that the rumor mill for M&A these days is somewhat out of control.