I hope this isn't true as it will likely mean the end of what is decent about BlogLines which is essentially everything but the search. I've been using BlogLines for a very long time and I've always found the search to be a bit lacking. I doubt that with Ask Jeeve's track record they will be able to help in that department.
I haven't seen an official announcement yet so hopefully this is just false.
Update: I've been meaning to post this update for a while. Here is a response from Mark Fletcher's response so things look promising.
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