Xanga currently ranks as #14 top site on the internet according to Alexa.com, while Myspace (funded recently by Redpoint VP, and trades on the AMEX) ranks #18, Friendster (KP and Battery backed) #37.
Check out the graphs of Xanga vs. other blog communities.
Who will acquire Xanga? Yahoo (360 beta), Google, Microsoft already all have their own blog communities. And, LiveJournal was recently picked up by Six Apart.
Perhaps an Interactive Corp or AskJeeves (given their recent interest and acquisition in Bloglines) will find them accretive?
Or, Xanga may not even be up for sale, like Craigslist
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