Digg for Sale - Google and Microsoft up for a fight
March 8, 2008 by colbert low
Filed under Announcements
OK, this is the hottest news this week. Is DIGG really up for sale ? Digg was founded in late 2004 and has raised $11.3 million in funding. Kevin Rose is one lucky dude and I recently read about his Diggnation tour in UK. Digg also earned $250,000 per month in Google Adsense revenue back in 2006 and I am sure it’s increased.
If its true, then good for them. I bet they will be sold for USD $ 208 million, considering its 2008, ha! What do you think ?
Digg is prepared to take less than the $300 million Allen & Co. were floating late last year. Google, our source says, will likely bid $200-$225 million, which Digg would likely accept.
Microsoft is looking at a somewhat lower price. That makes sense, since most of Digg’s revenue today comes from a three year advertising deal that Digg signed with Microsoft last year. That deal has revenue guarantees - and Microsoft may be hesitant to value Digg based on revenue that they supply.
