Google and Microsoft said to be eyeing on Digg

User-generated news submission site Digg created a new trend of social media sites since its advent in December 2004. It also brought a relatively new term in industry called social book marking. Carrying on the trend of Web 2.0, Digg become instant hit as it lets it’s users to share there own stories adding a link back from Digg.

Digg has been currently working with influential investment bank Allen & Co. for a few months and pitching big tech and media companies for a sale. With a huge user base actively digging contents on the site, Digg has become a highlight for most companies and every one wants a share of it.

After a number of failed proposals, it is learnt that four companies are in row to bid for Digg including Google and Microsoft. The owners of Digg.com has expected a bid of $300 million which has been floating since last year while Google is expected to bid around $200-225 million which might be acceptable for Digg.com. Microsoft though is looking for somewhat lower price as the majority of Digg’ revenue comes from advertising deal that Digg has with Microsoft. Though Digg has relatively less advertising revenue but it can be highly valuable seeing its user base which has majority of its users from technical fields.

Futures only hold who will eventually buy Digg.com but it is surely going to increase competition between Google and Microsoft for yet another product.

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