The deal is all cash and mostly upfront, according to our source, although the founders will be locked in for a couple of years. The information we have is that the deal is now under a binding term sheet and will close in 2-3 weeks, and there is nothing that can really derail it at this point.
Feedburner was founded in 2003 and has raised $10 million in capital over two rounds. The service is used by bloggers seeking to sell advertising on their feeds and to measure their feed and blog stats. According to Hitwise the site has grown its US traffic by 204% over the past year.