Google, Microsoft may be eyeing

March 7, 2008 founder Kevin RoseIs for sale?Even though founder Kevin Rose told CNET last month that the answer is “no”, today the answer appears to be “yes”.According to TechCrunch, Google and Microsoft may be prepared to fight over the popular Web site, which lets readers recommend articles to others.Digg has been working with investment bank Allen & Co, and is pitching big tech and media companies on a sale. It is even prepared to take less than the $300 million suggested late last year, TechCrunch said.Four companies, including Internet giants Google and Microsoft, are in heavy due diligence with Digg. The other two are media or news companies, TechCrunch said, adding that Google will likely bid $200-$225 million, which Digg would likely accept. Is Barry Diller’s IAC interested?TechCrunch expects a bidding war between Microsoft and Google.It wouldn’t be the first time they have butt heads over Digg. Last summer, Microsoft became the exclusive provider of display and contextual advertising on, replacing Google.Then again, Silicon Alley Insider suggests that any offer over $100 million might be too much.Update: Digg CEO Jay Adelson speaks out on the company’s blog:

Normally our policy is to not comment about things like this, but this morning’s rumors about a bidding war involving Google and Microsoft have created such a stir we feel compelled to tell you all directly that they are completely inaccurate.Sorry to burst any drama theories, but they aren’t true. We remain focused on improving Digg and rolling out great features.

Alleyinsider’s Peter Kafka remains a bit skeptical over Adelson’s comments.(TechCrunch )Keep an eye on:

  • Microsoft’s Steve Ballmer pledged the company would gain share against Google in online advertising and Web searching, even if it’s his “last breath” at the company. (Reuters)
  • The board of National Public Radio its said chief executive, Ken Stern, was leaving after less than 18 months “by mutual agreement.” (NYT)

(Photo: founder Kevin Rose,

One comment

We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see

[…] News:Reuters: Google, Microsoft may be eyeing Digg.comConde Nast Portfolio: A Deal for […]

Posted by Will Diggers dig a corporate overlord? – NEWS.Tuls.Net | Report as abusive

[…] Web 2.0’s Long Road to IPOsWith a recession looming, Facebook, LinkedIn, Slide, and many others are focused more than ever on building lasting businesses rather than running for the IPO exit. But Digg may buck the trend. Several sites have reported that Google and Microsoft have made overtures in the ‘less than $300 million’ range. […]

Posted by » The Week in Geek – March 10, 2008The Week in Geek | Report as abusive

[…] internet heavyweights Google and Microsoft for website News sites such as CBC News and Reuters have both published speculative reports on this possible battle of internet titans first brought to […]

Posted by Google and Microsoft digging Digg | TECHTOQUE.CA | Report as abusive

I have also been looking at digg and notice many sites using it.. but would the average person just go there? not sure..

Posted by Mike Smith | Report as abusive