25% off XPS M1330 & M1530 laptopsReport: Google, Microsoft, and two media companies bidding on Digg
If every blog rumor were to be believed, social news site Digg would have been bought a dozen times over by now, so take the latest one with the requisite grain of salt.
TechCrunch reported early on Friday that four companies are in the running to place bids on Digg--Microsoft, Google, and two unidentified "media companies"--and that a sale may happen soon. It'll likely be less than the $300 million that Digg was once rumored to go for; TechCrunch's Michael Arrington cited sources who said that Google is prepared to bid $200 million to $225 million and that Microsoft, which currently serves ads on Digg, is aiming slightly lower. That's a good bit less than the $300 valuation that was floating around when Digg reportedly hired investment bank Allen & Co. to shop it around.
As for the media companies, no specifics are given, but keep in mind that Digg has deals with several traditional media companies' online arms, like CBS and News Corp.
In an interview several weeks ago, Digg founder Kevin Rose told CNET News.com that he thought selling the company to a big buyer could get in the way of running it efficiently.
One TechCrunch commenter noted, "Good for them, but Diggers will complain either way," referring to the site's active and opinionated crowd of regular users. "There's no pleasing them."
Caroline McCarthy, a CNET News staff writer, is a downtown Manhattanite happily addicted to social-media tools and restaurant blogs. Her pre-CNET resume includes interning at an IT security firm and brewing cappuccinos. E-mail Caroline.
- Topics:
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Gossip
- Tags:
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Digg,
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social news,
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social media,
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rumors,
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acquisitions,
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M&A,
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Microsoft,
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Google
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used. Please avoid split infinitives! "If this one turns out to not be
true," should read "If this one turns out not to be true".
Surely, Star Trek fans will use "to boldly go where no man has gone
before" as justification in a response...
(don't matter to me - I prefer Slashdot).
/P