A Fading Flickr?

More goodness from Business 2.0 today. My colleague Michael Copeland has a fantastic piece on why its raining cash in Sillicon Valley. Somewhere in his story he has this interesting nugget about Flickr.

When it went live a year ago, it attracted plenty of notice and even pulled in a few angel investors, such as Excite co-founder Joe Kraus. But that’s nothing compared with the torrent of offers it’s entertaining now. Google (GOOG) and Yahoo (YHOO) want to buy it outright, while venture capital firms are flooding it with all kinds of creative proposals. ‘We get four or five calls a week from VCs,’ says Stewart Butterfield, who co-founded Flickr with his wife, Caterina Fake. ‘We even had a health-care fund call recently. I guess they wanted in on the excitement.’

Not sure how this will turn out, but given the aggression with which Google has moved with Picasa, and their track record of replicating-and-improving on other people’s ideas, you think maybe Flickr missed an opportunity to cash out? A bonus link to Bill Burnham’s analysis of coming battle between Google and Yahoo over what else, blogs.