CEO Skrenta lays the deal out.
PR rep Rubel weighs in, along with Malik, Battelle, Hammock, Ali, and Jarvis.

Update: Bambi Francisco, Marketwatch: "Topix.net would not disclose the terms of the deal, only to say that the funding was less than $5 million. The capital will be used by the nine-person team, partly to give a salary to the founders, who hadn't paid themselves in three years."

Clarification: Valuation for Topix.net is rumored to be way higher than Bloglines. If the $$ rumors are right, the founders should be feeling pretty, pretty good.