inside scoop is that Hong and the other guy are having problems, can't agree on the direction of the company. Hong wants to take it much further, make it a friendster/myspace thing and throw everything in such as video, blogs, the whole 9. Engineers are leaving and new ones are hard to come by. They may just sell it if they can't work it out in the next 30 days.
Poor Jim Young, always "the other guy" to James Hong. Though normally we assume that everything we're told is true, we're going to cast doubt on this one. Rumor has Hot or Not making a pleasant pile of cash ($6 million a year). We've already mentioned Hong hiring engineers, and though he's certainly ambitious — and probably feels that pals like Paypaller Max Levchin have done better — bailing out now would seem a little premature.