Microsoft and Google go for Digg

Rumours of bidding war

10 March 2008 12:15 GMT / By Katie Scott

Google and Microsoft are claimed to be going up against each other for the social media site, Digg.

TechCrunch is reporting that Digg is working with influential investment bank Allen & Co. and has been pitching to big tech and media companies on a sale.

And two media/news companies are claimed to be interested as well as Google and Microsoft.

Google, TechCrunch's source says, will likely bid $200-$225 million, which Digg would likely accept.

Microsoft is expected to come in lower than this but already has a 3-year advertising deal with Digg, from which, says TechCrunch, the media site gets most of its revenue.

TechCrunch continues that any sale could jeopardise this Microsoft advertising deal.

The story immediately excited a denial from Digg - whose CEO Jay Adelson, labelled the TechCrunch story "completely inaccurate".

In the meantime, Digg users have made their opinions known on a possible buy-out with 544 comments to date - and mounting - and not many, (shock horror) are pro Microsoft.

We'll keep you posted on this story.