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Ny Times [nytimes.com]: Questions About Google Acquisition.
Wired [wired.com]: Why Did Google Want Blogger?
So if Google is going to put more significant emphasis on weblog outbound links, does this mean I now have to be a blogger too, to keep my rankings high? :)
Even though Google already follows blog links, that is a danger. With this extra emphasis (even if it would only be for sending out the Freshbot), blog spamming will probably follow guestbook spamming. Hunt the high PR ones and ruin them.
Interesting is that Google does index blog links, but - seemingly not - Google-group links. No reason usenet-type dicussion would be less interesting, Google just does not have a Pagerank mechanism to see if they could be authoritative.
so perhaps google wants to separate them into their own search category. web-images-groups-directory-news-blogs. doesn't explain the buyout, but maybe that's the plan.
Thus, it is possible Google bought Blogger on the logic blogs are used more by the geek types. Also, it is possible that Google got a good price for Blogger, and is just trying to make a buck.
Software companies by other software companies for one to three reasons:
1) Access to customer base,
2) Software technology,
3) Engineering Brainpower.
If what the Dieselpoint guy said is Google's motivation, then Pyra's team might make a lot of sense for building more context searching techniques into Google.
I don't know much about blogging and the other blogging software companies though to know if Pyra was the best acquisition for such a purpose.