Weblogs Inc. to Be Bought by AOL

Confirmed by Calcanis.
Paid Content has an exclusive:

Weblogs Inc, the blog media company founded by Jason Calacanis and Brian Alvey, is being bought by America Online, paidContent.org has learned from multiple sources. The deal is done and should be announced this week…(Updated: it might be announced tomorrow AM now.)

Thanks Darren for Skyping me out of my slumber to tell me about it!