Could Microsoft Be The Big Digger?
$300 million could be the magic number that sends Digg to new ownership, as bloggers speculate on who might end up the new top Digger.
To bring in that payday, Digg has enlisted the boutique investment bank Allen & Company to assist.
Citing a reliable source, VentureBeat noted the $300 million price tag that has been rumored for months is still in place.
Valleywag picked up on the rumors a month ago, saying, "Digg’s contentious audience, too, might not take to the site’s new owners. That’s the biggest obstacle, I suspect, to any deal happening."
One would think Microsoft would rate 1st, 2nd, 3rd, and 4th through 25th on the list of new owners the Digg audience may not like. But with Microsoft providing advertising on Digg, Steve Ballmer may be the most likely person to write a $300 million check, if only to keep it out of Google’s hands.
That is, if Digg has performed well for Microsoft’s advertisers. If not, they could get in the game to bid the price up for someone else, ideally Google, and trick them into paying a premium on what could be a poor return.
If Digg has picked up in value by shifting to less tech and more mainstream content, as Allen Stern suggested, Digg could be a lucrative social media buy.