Dave Sifry has issued his latest state of the blogosphere report and - surprise, surprise - the blogosphere is still growing. In fact, the blogosphere is doubling every five and a half months as a new blog is created a second. Technorati now tracks 27.2 million blogs and its blog finder has more than 850,000 blogs and 2,500 categories. It would also be interesting to see how Technorati's doing from a business perspective. It's tracking more blogs, getting more traffic (60% of it is spam pings, however) and solidifying its status as one of the blog search leaders. Does Technorati move to expand its strategic focus by acquiring an RSS reader or blog publisher? Or does Technorati get snapped up by someone looking for a bigger foothold in the blog search market such as Yahoo or Google? Given all the M&A activity (del.icio.us, Flickr, etc.), this is the year Technorati eats or get eaten.