Generating revenues off Blogs Paid Content has an article on business potential of weblogs and how some of the niche weblogs can be acquired by the more traditional media companies. The article has a list of some probable M&A marriages. For e.g. Corante Blog being taken over by Wall Street Journal Online, Gawker by New York Observer etc. It also talks of few blogs that were bought by semi-academic institutions in 2002.
...Romenesko's MediaNews and E-Media Tidbits, bought out by the Poynter Institute; Cyberjournalist.net, by the American Press Institute; and Arts and Letters Daily, bought out by The Chronicle of Higher Education (Wasn't TVSpy a weblog before it was bought by Vault.com?)
The article makes clear what they mean by being bought, which is quite important.
...And let me explain the term "bought" here: this may not necessarily mean exchange of money, but could be a package where the blogger gets a salaried position, or a certain cut out of the ad/subscription revenues and other such combinations. As Mark Glaser recently wrote on OJR: "Best-Case Scenario [in 2003]: Smart bloggers get their due, become famous, and can get paid for what they do. Media companies get it, and start assigning blogs as real jobs and not just extra-curricular activities." Amen!