Google's planned purchase of Feedburner could add new revenue

Several sources have confirmed that Google Inc. (NASDAQ: GOOG) is in the closing stages of buying RSS management company FeedBurner. The start-up's traffic has increased over 200% in the past year, according to Hitwise. The company describes its business as Web-based tools to help bloggers, podcasters, and commercial publishers promote, deliver, and profit from their content on the Web.

Websites and blogs use FeedBurner to track RSS feeds and traffic to their sites. Google will pay about $100 million for the company.

The RSS feed business is one that has yet to be monetized, but FeedBurner does have a nascent advertising program. With the use of Google's Adsense program, this revenue could almost certainly be pushed up sharply.

Because FeedBurner is an important source of traffic and data for blogs, it also fits well into the Google Blogger platform, which is used to create millions of blogs. Many of these blogs use Adsense to get their revenue. With Feedburner, Google will have "one-stop shopping" that will offer RSS feeds, audience data, and advertising.

Yahoo! Inc. (NASDAQ: YHOO) and Microsoft Corp. (NASDAQ: MSFT) could have used FeedBurner to enhance their relationship with the blog and RSS communities, but that's another story.

Douglas A. McIntyre is a partner at 24/7 Wall St.