Yahoo! Inc. (NASDAQ:YHOO) is rumored to have an interest in buying New York based URL shortening and tracking company Bit.ly. The talks are still in early stages. However if Bit.ly plans to sell, we could expect it to go for over $10 million given that they raised $3.5 million in VC funding from Ron Conway and other angel investors.
However there is another rumor floating around about how Bit.ly is seeking $100 million for an acquisition from Twitter or Google. The rumor is according to a source with Om Malik. [GigaOM]