Update: Digg adamantly denies these rumors on its company blog

digg logo2Digg, the leading social news site, is currently in the midst of a bidding war from potential purchasers Google and Microsoft, along with two media companies, according to Techcrunch.

This is the latest in a series of rumors of Digg being for sale. The company has hired New York investment bank Allen & Co. to help it find a buyer (our coverage). Digg has been looking for more than $300 million but now may be willing to settle for as low as $200 million, according to the report.

Allen & Co. in fact just held one of their secretive conferences, so Digg executives and potential buyers likely had some face time to talk about deals — which is part of the bank’s game plan (our coverage).

It’s rare these days to find a deal in which either Microsoft or Google is involved and the other is not. It happened last year with DoubleClick, spread on to Facebook, and now is playing out in the Yahoo deal. This tech rivalry is turning into something of Red Sox/Yankees proportions in baseball.

Microsoft already has an advertising deal with Digg (along with Federated Media). Techcrunch’s Michael Arrington thinks “Microsoft may be hesitant to value Digg based on revenue that they supply.” To that I’d add: They weren’t with Facebook. Lessons learned?

[MG Siegler contributed to this article]

VentureBeat

VentureBeat's mission is to be a digital town square for technical decision-makers to gain knowledge about transformative technology and transact. Our site delivers essential information on data technologies and strategies to guide you as you lead your organizations. We invite you to become a member of our community, to access:
  • up-to-date information on the subjects of interest to you
  • our newsletters
  • gated thought-leader content and discounted access to our prized events, such as Transform 2021: Learn More
  • networking features, and more
Become a member