URL-shortening startup Bit.ly is in in the early stages of acquisition talks with internet giant Yahoo and others, according to a report by GigaOm.
Bit.ly lets users submit long URLs (Web addresses), and spits out corresponding short ones that are only a few characters long. The service is widely used on Twitter, which limits the number of characters that users can put in a post.
“The interest in the company has increased over the past 60 days or so. Conversations are said it to be in early stages,” wrote tech blogger Om Malik, citing anonymous sources.
A Bit.ly buyout would fit right in with Yahoo!’s recent business strategies, according to Malik. To become more of a real time information company, Yahoo! was also eying location-based startup Foursquare.
Earlier this year Bit.ly entertained buyout offers from Twitter and Google, but failed to come up with a deal.
Bit.ly became the default URL shortener for Twitter in 2009, helping it breeze past its competitors. However in April, Twitter registered the “twee.tt” domain, leading some to speculate that Twitter was building its own in-house URL shortener.