Brian Alvey and Jason Calacanis confirm that they have sold software company Blogsmith to AOL for an undisclosed sum; Valleywag, which reported the sale first, puts it at $4-5 million. When Weblogs Inc. was sold to AOL last year the deal didn’t include separate company Blogsmith, developer of the CMS used to power the blog network. Blogsmith remained the software base for Weblogs Inc. and powers other AOL blogs, including at TMZ.com. As was the case with heftier acquisition Relegence, announced earlier this week, acquiring Blogsmith fits in with AOL’s efforts to develop and deploy its own publishing and content management system. Those efforts are headed by Jim Bankoff as EVP-consumer and publisher services.  Alvey’s blog.
—Among those with a stake in Blogsmith: Mark Cuban, who also invested in Weblogs Inc. and still blogs for the network. Gordon Gould was the CEO when the company was announced in August 2005; he is now CEO of ThisNext.
Related: AOL-Weblogs Inc Deal: Some Futher Details