There were rumours about it earlier this week, but it's now official. For those of you who haven't heard about Writely, it's a free, web-based, collaborative word processor.

Very smart acquisition. Combine this with Gmail, the upcoming Google Calendar (aka CL2), and Google's vision of GDrive, free unlimited online storage space, and things start to look pretty interesting. And since Writely allows you to post to a blog, the acquisition could also lead to some sort of integration with Blogger too.