Besides hosting Etsy cofounder Rob Kalin on her TV show, we hear Martha Stewart has been "cozying up" to Kalin off camera to talk about a partnership and — a source connected to Etsy employees tells us — a possible acquisition. On Etsy, members buy and sell only handmade goods, an idea almost as suited to Martha Stewart's audience as Kalin himself. Check out the above video taken just after Kalin finished a recent segment on Stewart's show and try tell us the her demographic won't ache for more of Kalin's handcraft. It's too bad for them we doubt Etsy investors are ready to sell.

Etsy and Kalin just closed a $27 million funding round on January 31 and it's unlikely investors would be ready to flip so soon — especially considering that two Etsy investors, Flickr cofounder Caterina Fake and delicious founder Josh Schachter, were burned selling to Yahoo months too soon. "I don't think either would say "Oh, flipping to Yahoo when i did was awesome!," a source familiar with their thinking tells us.